US Stock Market Wraps September Volatility, Starts Q4 Amid Mixed Signals
September Market Performance and Key Developments
US stocks fluctuated on Wednesday, caught in a tug-of-war between conflicting economic signals.
Softer-than-anticipated inflation data eased expectations for Federal Reserve interest rate hikes, while strong reports on GDP, consumer spending, and private payrolls highlighted the resilience of the US economy. Nevertheless, rising crude oil prices sustained concerns about inflation, and long-term US Treasury yields climbed for the seventh consecutive session.
The S&P 500 and the Dow finished the week lower, while the Nasdaq managed to gain ground. For the quarter, both the S&P 500 and the Nasdaq posted positive returns, though the Dow concluded the July-September period in the red.
I will go into more detail on today’s market moves below.
Recommended Reading: Market Drivers and Global Events
1. Cool inflation data diminishes the likelihood of an October rate hike from the Federal Reserve
2. Second-quarter US GDP revised higher amid robust consumer spending
3. The Federal Trade Commission is conducting an industry-wide probe to determine potential dangers posed by AI
4. Russia unleashed widely anticipated airstrikes against Ukraine’s energy grid as winter looms
5. The Securities and Exchange Commission proposes new regulations aimed at giving accredited <a s Key Market Moves
Stocks and Sectors
• STOCKS: <a s Talking Points
Market Sentiment and Global Risks
* Markets turn the page on the month, quarter
Investors have finished a tumultuous month and quarter, and the markets have remained resilient.
This performance persisted despite a global bond sell-off fueled by surging energy costs, rising debt, inflation fears, concerns regarding the risks of artificial intelligence, upcoming midterm elections, a lack of progress in Iran-related negotiations, and the historical tendency for September to be a difficult month for <a s response to its latest proposal as US troops withdraw from Iraq
While President Trump said he rejected Tehran’s latest peace proposal, Iran’s foreign minister, Abbas Araqchi, said he had not received a formal rejection, and an Iranian government spokesperson said Araqchi had conveyed a response to Iran’s proposal to reopen the Strait of Hormuz within seven days after the US lifts its blockade.
Meanwhile, Iran’s allies were celebrating the departure of the last American forces from neighboring Iraq, calling the pullout a victory for its “axis of resistance.”
Middle East Tensions
* Saudi Arabia denies Israeli request to allow its planes to pick up Israeli passengers
Saudi Arabia rejected a request to permit Israeli military aircraft to retrieve citizens after a flydubai flight made an emergency landing in the kingdom, according to two security
The passengers were set to resume their journey to Dubai, the airline said, after the co-pilot stabbed the pilot and tried to crash the plane. But passengers restrained the attacker while other pilots landed the plane, said Israeli Prime Minister Benjamin Netanyahu.
What Could Move Markets Tomorrow?
Key Events and Economic Data to Watch
• Developments in the Middle East
• US benchmark Treasury yields
• US Federal Reserve speakers: Richmond Fed President Thomas Barkin, Fed Governor Christopher Waller, Vice Chair Philip Jefferson, Vice Chair Michelle Bowman, NY Fed President John Williams, Dallas Fed President Lorie Logan
• US Challenger layoffs (September)
Additional Information
Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.
