US Stocks Climb as Soft Inflation Data Eases Fed Hike Fears

The US stock market saw gains on September 30th as investors breathed a sigh of relief over lower-than-expected inflation numbers. The Federal Reserve (Fed) has been under pressure to raise interest rates, but the recent data eased some concerns.

The August personal consumption expenditures (PCE) price index rose 3.4% from a year earlier, which is 0.3 percentage points below market expectations of 3.7%. This came as welcome news for markets, with all three major New York stock indexes opening higher.

The S&P 500 index was at 7,704.47, up 33.63 points (0.44%) from the prior session's closing level of 7,670.84. The Nasdaq composite rose 228.54 points (0.85%) to 27,026.08, and the Dow Jones industrial average was up 38.84 points (0.08%) at 51,388.76.

Comments from John Williams, president of the New York Federal Reserve Bank, also supported sentiment. He stated that there is no need to rush additional rate hikes and that there is room to watch upcoming economic data.