Dow futures gain 100 points after data shows inflation slowed last month: Live updates - CNBC
U.S. markets saw mixed results as inflation data showed a slowdown, with the PCE price index rising 3.4% annually. Despite the positive inflation news, the Dow Jones fell while traders adjusted their expectations for future Federal Reserve interest rate hikes.
Why it matters
Economic indicators like PCE and Fed rate expectations are critical for investors and influence global financial stability.
The S&P 500 slid on Wednesday, the final day of September, even after new U.S. economic data showed inflation slowed last month.
The broad-market index dropped 0.25%, giving up its gains from earlier in the trading day and closing at 7,651.54. The S&P 500 was up as much as nearly 0.7% at one point during the session. The Nasdaq Composite advanced 0.24% to end at 26,861.06. The Dow Jones Industrial Average fell 0.86%, or 443.87 points, to 50,906.05.
The personal consumption expenditures price index for August increased at an annual rate of 3.4%, down from 3.7% the month prior. Economists surveyed by Dow Jones had been looking for inflation to remain steady at 3.7%. Even more encouraging was core PCE, excluding food and energy, which rose 3% year on year, down from 3.3% the month before and also lower than economists had forecast.
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