Inflation cooler than expected; stocks mixed as oil and yields climb
By Tom LoBianco | Quincy News Correspondent
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Washington (Quincy News) — Market Recap
Inflation came in cooler than expected in August, reducing expectations for another interest-rate hike at the Federal Reserve’s October meeting. The personal consumption expenditures price index rose 0.3% from July and 3.4% from a year earlier, while core PCE, which excludes food and energy, increased 0.2% for the month and 3.0% over the year. The annual rates were unchanged from their revised July levels but below economists’ forecasts.
Stocks initially rose but lost momentum as longer-term Treasury yields and oil prices climbed. A separate government report revised second-quarter economic growth up to an annualized 2.2%, from the previous estimate of 1.5%, underscoring the economy’s continued resilience.
The S&P 500 ended Wednesday down 0.25%, the Dow Jones Industrial Average fell 0.86% and the Nasdaq Composite gained 0.24%. Oil rose by about $1 a barrel amid stalled U.S.-Iran talks and tight fuel supplies, with U.S. crude settling at $90.42 and the more actively traded December Brent contract at $98.03.
Today’s Focus
U.S. stock futures had turned modestly higher shortly before 8 a.m. ET, led by Nasdaq futures, after swinging between mixed and positive territory overnight. But elevated borrowing costs and energy prices remained a concern as October trading began.
The 10-year Treasury yield briefly reached 5.34% before easing, while the 30-year yield approached 5.66%. Brent crude’s current benchmark contract was trading near $100 a barrel.
Micron reported stronger-than-expected fiscal fourth-quarter revenue after Wednesday’s close and forecast current-quarter revenue above Wall Street estimates, reinforcing strong demand for memory chips used in artificial intelligence and data centers. The results helped support broader chip stocks in premarket trading, even as Micron shares edged lower following their sharp gains this year.
Investors will get the latest weekly jobless-claims report Thursday morning, followed by two measures of manufacturing activity and August construction spending. Several Federal Reserve officials are also scheduled to speak, including Governor Christopher Waller and Vice Chair Philip Jefferson. The September jobs report arrives Friday morning.
ON THE SCHEDULE FOR THURSDAY, OCTOBER 1, 2026
– 8:30 a.m. ET – Weekly initial jobless claims
– 9:45 a.m. ET – Final September S&P Global U.S. Manufacturing PMI
– 10 a.m. ET – September ISM Manufacturing PMI; August construction spending; Fed Governor Christopher Waller speaks
– 1:30 p.m. ET – Fed Vice Chair Philip Jefferson speaks on the U.S. economy and monetary policy
– Friday, 8:30 a.m. ET – September jobs report
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