Dow Stagnates Amid Mixed Economic Data

The Dow Jones Industrial Average fell on its last day of September, as investors reacted to new economic and inflation data. The average was trading roughly flat around 51,355 to 51,375 at midday, with a range of 0.0% to +0.1%. This stagnation contrasts with gains in the S&P 500 and Nasdaq Composite.

The divergence between these indices has been a recurring feature this month. The Dow was down roughly 3.5% for September going into Wednesday, while the S&P 500 was little changed and the Nasdaq was up about 1.6%. Technology stocks have been driving the rally, but they make up only a smaller share of the Dow.

The financial sector has been the weakest part of the US market this month, with Investrade reporting that it was down more than 6% in September going into the final session. Higher long-term yields have raised fears about credit quality, commercial real estate exposure, and weaker loan demand, which has hurt bank shares.

The official closing level for the Dow will be confirmed after the 16:00 ET bell on Wednesday. Friday's non-farm payrolls report will shape expectations for the Federal Reserve's October meeting.