US stocks closed mixed after a crucial inflation report showed prices cooled more than expected in September, with tech emerging as a bright spot. Treasury yields continued to rise, with the 10-year yield (^TNX) jumping to 5.29%.
The tech-heavy Nasdaq Composite (^IXIC) posted the only gain of the major indexes, rising 0.2%, while the S&P 500 (^GSPC) fell by 0.3%. The Dow Jones Industrial Average (^DJI) fell 0.9%, or by more than 400 points, after stocks fell fractionally the day before.
The Dow and S&P 500 closed out September with monthly losses of 4.9% and 0.7%, respectively. The Nasdaq gained 1.7% during the month.
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At close: 4:48:36 PM EDT
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Tech stocks gained after a cool reading on the Personal Consumption Expenditures (PCE) index reinforced the notion that the Fed can wait to hike. On Wednesday, the Fed’s preferred inflation gauge rose 3.4% in August, less than expectations for 3.7%.
That led traders to further pare back bets that the Federal Reserve would hike interest rates at its October meeting to 37% from over 70% odds a week ago, per CME Group. The shifting bias to a Fed hold came after New York Federal Reserve president John Williams said there was “no need for urgency” to raise rates in October, which markets viewed as a sign that Fed rates could stay put.
Stocks continue to be caught in the undertow of rising bond yields and volatile oil prices as the war in Iran enters its seventh month, keeping inflation concerns in play. Crude oil futures (CL=F, BZ=F) stabilized on Wednesday in the mid-$90-per-barrel range.
An ADP report on private-sector employment also showed that hiring was strong in September. US private employers added 90,000 jobs this month, an improvement from the 36,000 jobs added in August.
Micron (MU) earnings after the bell will also offer investors insights into the state of the memory and AI market.
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US stocks finish on mixed footing, with tech as lone bright spot
The US stock market notched a mixed day on Wednesday after PCE data — the Fed’s preferred inflation gauge — showed price increases cooling more than expected in September, paring back October rate hike bets.
The tech-heavy Nasdaq Composite (^IXIC) was the only major index to finish in the green, gaining 0.2%. Meanwhile, the S&P 500 (^GSPC) fell by 0.3%, while the Dow Jones Industrial Average (^DJI) lost 0.9%.
50,906.05 -443.87 (-0.86%)
At close: 4:48:36 PM EDT
^DJI ^GSPC ^IXIC
The tech trade took another leg up on Wednesday’s Personal Consumption Expenditures (PCE) index, which showed prices rose 3.4% in August, less than expectations of 3.7%. Bets on a rate hike in October pulled back to roughly 40% odds in turn, though a December hike is still largely expected.
Bond yields briefly fell in the minutes after the PCE report before continuing a climb upward that is putting increasing pressure on equities and broader economic growth.
Fed’s $2.5 billion renovation broke no laws, but watchdog blasts cost overruns
Yahoo Finance’s Jennifer Schonberger reports:
A new report from the Federal Reserve’s watchdog found that the Fed’s Board of Governors failed to effectively manage renovations to its headquarters, repeatedly ignoring cost-control safeguards and repeating the same project management failures that plagued its past building renovations.
But the missteps fell short of a violation of law, the Federal Reserve’s inspector general found.
Read more here.
Elon Musk, Delta’s Ed Bastian reportedly feud over in-flight Wi-Fi
Elon Musk and Delta Air Lines (DAL) CEO Ed Bastian are reportedly feuding over a topic near and dear to frequent fliers’ hearts: in-flight Wi-Fi (or lack thereof).
The round started when an airline industry watcher posted remarks Bastian reportedly made at a Delta company event. Regarding SpaceX’s (SPCX) Starlink satellite service, Bastian allegedly said, “We do not want to be with Elon Musk. Trust me.”
The watcher, who goes by the X handle @xJonNYC, also reported that at an earlier event, Bastian said Delta had tested Starlink but did not want to partner with Musk: “If you know his reputation, it’s all true what they say about him.” JonNYC said the quotes reached him secondhand and he could not verify them. In a follow-up, he cited a “very solid” source who said the sticking points were “mainly financial ones.”
Tech stocks are gaining…
Tech stocks are rallying on optimism that the Fed won’t rush to hike rates in October after all. The tech-heavy Nasdaq Composite index (^IXIC) veered higher, while the blue-chip Dow (^DJI) has stayed flat.
Five of the megacap “Magnificent Seven” stocks were trading in the green, with Alphabet (GOOG, GOOGL) rising 3% in midday trading, as shown in the AlphaSpace heatmap below.
Nvidia stock just had a monster quarter
Yahoo Finance’s Brian Sozzi reports:
Nvidia (NVDA) CEO Jensen Huang was seemingly everywhere in the third quarter.
His appearances included an earnings call, media interviews, tech conferences, and dinner and lunch events with President Trump, to say nothing of his spending $12.9 billion to buy Hugging Face.
All of the visibility for the world’s most popular tech CEO and his iconic black leather jackets appears to have paid off for Nvidia investors.
Shares of Nvidia are on track to surge 17% in the third quarter, which officially comes to a close today. By comparison, the S&P 500 (^GSPC) is up 4.3% in the quarter. Nvidia’s stock is now up 23% year to date.
Mattel stock falls on news longtime CEO Ynon Kreiz is stepping down.
Mattel (MAT) stock slid 3% after the company announced that its longtime CEO, Ynon Kreiz, is stepping down on Oct. 2.
He will be replaced by board member Roger Lynch, who has led Condé Nast since 2019.
Lynch led growth in Condé Nast’s subscriptions, video, live experiences, commerce, and strategic partnerships, according to Mattel. Before that, he served as CEO of music streaming service Pandora and CEO of Sling TV.
It’s the end of an era for Mattel. Kreiz has led the company since 2018. He is credited with reviving Barbie and expanding the company’s studios and theatrical releases — most notably with the 2023 blockbuster hit “Barbie.”
But with Mattel shares down 35% this year, a C-suite shake-up isn’t entirely a surprise.
Stocks open higher, US Treasury yields ease after crucial inflation report
US stocks opened higher for the final day of September as US Treasury yields eased following a crucial inflation report that showed prices cooled more than expected in September.
At the open, the Dow Jones Industrial Average (^DJI) traded near the flat line, while the S&P 500 (^GSPC) rose 0.3% and the tech-heavy Nasdaq Composite (^IXIC) advanced by 0.5%.
50,906.05 -443.87 (-0.86%)
At close: 4:48:36 PM EDT
^DJI ^GSPC ^IXIC
US consumer spending rose in August at the fastest pace in over a year, according to Bureau of Economic Analysis data released Wednesday. The cooler-than-expected print signals that the economy continues to move ahead despite elevated inflation.
Adjusted for inflation, personal spending rose 0.6% in August from July. It was the biggest monthly jump since March of last year. Meanwhile, the Fed’s preferred inflation gauge, Personal Consumption Expenditure (PCE) price index, rose 3% year over year vs. 3.3% expected. On a monthly basis, the PCE price index increased by 0.2% in August vs. 0.3% expected by economists.
Traders have lowered bets for another 25 basis point rate hike at the Fed’s October meeting to 35% from 51% a day earlier, according to the CME’s Fedwatch tool.
August PCE inflation print cooler than expected
US consumer spending rose in August at the fastest pace in over a year, signaling that the economy continues to move ahead despite elevated inflation.
Adjusted for inflation, personal spending rose 0.6% in August from July. It was the biggest monthly jump since March of last year, according to Bureau of Economic Analysis data released Wednesday.
Wednesday’s print is significantly cooler than economists expected.
The core Personal Consumption Expenditure (PCE) price index, which excludes the volatile food and energy categories, rose 3% year over year vs. 3.3% expected. On a monthly basis, the PCE price index increased by 0.2% in August vs. 0.3% expected by economists.
Fed officials are focusing closely on inflation and spending data as they decide when and whether to raise interest rates further. Traders have lowered their bets for another 25 basis point rate hike after the Fed’s Oct. 28 policy meeting to 35% from 51% a day earlier, according to the CME’s Fedwatch tool.
‘It’s a strong report’: US private sector added 90,000 jobs in September
Private sector hiring picked up in September, according to payroll processor ADP, helped by continued strength in fields like education and healthcare.
Private companies added 90,000 jobs this month, an improvement from a revised 36,000 jobs in August, new data released on Wednesday showed. Economists surveyed by Bloomberg expected a gain of 75,000 jobs.
Workers also saw healthy pay growth, with base wages rising 3.2% year over year, and gross pay up 4.7%. Job changers saw even bigger gains.
“It’s a strong report,” Nela Richardson, chief economist at ADP, said in a statement. “After a three-month slowdown, job creation rebounded and pay growth remained solid.”
Nvidia CEO Jensen Huang: AI data center build-out could create 1 million jobs and reshape the US economy
Ahead of this Friday’s key jobs report, Nvidia (NVDA) CEO Jensen Huang had some bullish things to say about job creation in the US in the coming years.
Yahoo Finance’s Michael Kelley writes:
Nvidia CEO Jensen Huang, sitting on a panel next to SpaceX (SPCX) and Tesla (TSLA) CEO Elon Musk as corporate AI leaders spent most of the day at the White House, said the AI data center build-out will create “probably about a million jobs.”
Huang added that “this is the first time in probably … 50 years [that] we’re re-industrializing the United States, creating a whole bunch of blue collar jobs.”
NVIDIA CEO Jensen Huan, right, and Elon Musk, during an event to mark the launch of the America.gov website, Tuesday, Sept. 29, 2026, in Washington. (AP Photo/Mark Schiefelbein) · AP Photo/Mark Schiefelbein
As Yahoo Finance’s Brian Sozzi detailed, the Alliance for America’s Skilled Trades (AAST) — an initiative launched by BlackRock (BLK), Carhartt, Ford (F), and Google (GOOG) — estimated that the US will need to fill 1.7 million skilled trades job openings annually through 2035.
Nvidia, Meta (META), and Microsoft (MSFT) are joining AAST this week.
Anthropic IPO documents show there really is only one risk with AI
Yahoo Finance’s Hamza Shaban reports:
Of all the risks Anthropic (ANTH.PVT) lists in 80-ish pages of warnings, amounting to almost a third of its IPO prospectus, there really is only one: not investing.
That’s the resounding message in the aftermath of the Claude maker’s IPO documents getting leaked.
The clear implied message of a frontier AI lab on the verge of becoming a $2 trillion company is that investors should join in. Sure, Anthropic listed the risks. But did you notice the expected $2 trillion valuation? Do you want to miss out on that? If the risks truly mattered, the projected valuation would be much closer to zero.
Potential investors will be confronted with the extraordinary message that advanced AI could pose “catastrophic or existential risks to humanity.” That’s the company’s own words via the prospectus, which was reviewed by Reuters. The risks associated with its AI models include “self-preserving behaviors,” attempts to “conceal or manipulate information,” and behavior “resembling blackmail.”
Good morning. Here’s what’s happening today.
Economic data: MBA mortgage applications, week ended Sept. 25 (-1.5% previously); ADP employment change, September (+70,000 expected, +38,000 previously); Retail inventories, month-on-month, August (+0.8% previously); Personal income, August (+0.5% expected, +0.4% previously); Personal spending, August (+0.9% expected, +0.2% previously); PCE price index, month-on-month, August (+0.4% expected, +0.2% previously); PCE price index, year-on-year, August (+3.7% expected, +3.7% previously); Core PCE price index, month-on-month, August (+0.3% expected, +0.2% previously); Core PCE price index, year-on-year, August (+3.3% expected, +3.3% previously); GDP annualized, quarter-on-quarter, second quarter (+1.5% expected, +1.5% previously); Personal consumption, second quarter (+3.4% expected, +3.4% previously); MNI Chicago PMI, September (51.2 expected, 47.1 previously)
Earnings calendar: Micron Technology (MU), Jabil (JBL), FactSet Research Systems (FDS), Conagra Brands (CAG)
Catch up on some top stories you might have missed overnight:
Robinhood rolling out agentic AI trading accounts for the masses
Decline in tourism hits US economy
China’s weak soybean demand dims prospects for US cargoes after tariff snub
Dollar set for large rise in September, mainly at euro’s expense
New Apple CEO John Ternus is reportedly planning layoffs as memory chip costs rise
Dollar set for large rise in September, mainly at euro’s expense
Reuters reports:
The dollar stood near this year’s high versus the euro on Wednesday and was poised for the largest monthly rise against it in 14 months, powered by US growth and rising US interest rates in contrast to the energy and debt worries swirling in Europe.
On Tuesday the euro dipped to its lowest since May 2025, at $1.1312, and it traded nearby at $1.1339 in Asia on Wednesday. The euro is also testing support around 178 yen.
The dollar is up nearly 2.5% on the euro in September and it is set to notch a third straight quarterly rise.
“The US economy is running hot, Europe is losing the global AI race, and energy supplies and French politics remain big concerns for the euro,” said Brent Donnelly, president of foreign exchange trading at analytics firm Spectra Markets.