US Stock Market Wraps September Volatility, Starts Q4 Amid Mixed Signals
September Market Performance and Key Developments
By Stephen Culp
NEW YORK, Sept 30 (Reuters) - US stocks gyrated on Wednesday, caught in the tug-of-war of mixed signals.
Cooler-than-expected inflation data tempered rate hike expectations from the Federal Reserve, while upbeat GDP, consumer spending and private payrolls data underscored US economic resilience. Even so, rising crude prices kept inflation jitters alive, while long-dated US Treasury yields moved higher for the seventh straight day.
The S&P 500 and the Dow lost ground on the week, while the Nasdaq advanced. For the quarter, the S&P 500 and the Nasdaq posted gains, but the Dow ended the July-September period lower.
I will go into more detail on today's market moves below. If you have more time to read, here are a few articles I recommend to help you make sense of what happened in markets today.
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 investors more access to private assets
Today's Key Market Moves
Stocks and Sectors
• STOCKS: Wall Street was mixed, with tech boosting the Nasdaq into positive territory, while European stocks logged their first monthly loss in six, bogged down by oil prices, bond yields
• SECTORS/SHARES: Tech, communication services and software/services were clear outperformers; megacaps, led by Alphabet and Apple, provided upside muscle
Currency and Bonds
• FX: The dollar softened against a basket of world currencies as cool inflation data reduced rate hike bets
• BONDS: US Treasury yields notched a seventh straight day of gains to reach multi-year highs
Commodities and Metals
• COMMODITIES/METALS: Crude prices settled higher amid stalled US-Iran talks; Gold reversed earlier gains as higher energy prices eclipsed cool inflation data
Today's Talking Points
Market Sentiment and Global Risks
* Markets turn the page on the month, quarter
Investors have closed the book on a tumultuous month and quarter, and markets have emerged intact.
This, despite a global bond rout driven by spiking energy costs, mounting debt, inflation jitters, existential fears of an AI-driven apocalypse, looming midterm elections, lack of progress in negotiations aimed toward ending the Iran war, and the simple fact that September is traditionally the worst month for stocks.
Geopolitical Developments
US-Iran Relations
* Iran says it received Washington'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 turned down the request to send Israeli military aircraft to retrieve Israeli citizens after a flydubai flight made an emergency landing in the kingdom, according to two security sources.
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
• Energy market moves
• 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)
• US Weekly jobless claims
• US ISM PMI (September)
• EU PMI (September)
• UK PMI (September)
Additional Information
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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.
(Reporting by Stephen Culp in New York)
