US Consumer Confidence Hits 12-Year Low, Stocks Edge Lower Amid Energy-Inflation Concerns

The US consumer confidence index hit a 12½-year low on September 30, causing stocks to edge lower. This decline has led to concerns about the ongoing energy-inflation risk and its impact on the economy.

Despite the decrease in oil prices providing short-term relief for inflation, elevated bond yields continue to weigh on high-valuation assets. The 10-year US Treasury yield climbed to approximately 5.256%, its highest level since 2002.

The upcoming PCE (Personal Consumption Expenditures) inflation report tonight will provide crucial insight into the October rate path. Analysts expect a 0.4% month-over-month increase in headline PCE and 3.7% year-over-year rise, with core PCE forecast to increase 0.3% month over month and 3.3% year over year.

Crypto markets remain relatively stable, with BTC trading within an approximate range of $82,700, $84,500, while ETH slightly outperformed. However, a stronger-than-expected core PCE reading could push Treasury yields higher and increase expectations for another rate hike in October.