Mixed US Stock Market Performance Amid Inflation and Trade Deficit Worries
The US stock market delivered a mixed performance on Wednesday as investors digested a batch of economic data, including a rise in inflation and a widening trade deficit.
According to Sharecast.com, the Dow Jones Industrial Average closed down 0.86% at 50,906.05, while the S&P 500 saw out the session 0.25% softer at 7,651.54 and the Nasdaq Composite saw out the session 0.24% stronger at 26,861.06.
The main driver of the market's performance was news that US inflation firmed in August, with the personal consumption expenditures price index rising 0.3% on the month and 3.4% year-on-year, according to the Bureau of Economic Analysis. Core PCE, which strips out volatile food and energy costs, increased 0.2% on the month and 3.0% over the year.
New York Fed President John Williams said there is 'no need for urgency' in raising interest rates, tempering expectations for further tightening ahead of the October meeting. The CME FedWatch tool now shows a 49% chance of a quarter-point rate rise next month, down from 71% on Monday.