US Stocks Fall Amid Mixed Economic Signals

Wall Street stocks fell on Wednesday as investors weighed the mixed signals from recent economic data. The S&P 500 slipped 0.3% to close its third losing month in four, while the Dow Jones Industrial Average dropped 443 points or 0.9%. The Nasdaq composite added 0.2%, bucking the overall trend.

The decline came after reports showed that the US economy was stronger than expected in the spring, with inflation at 3.4% year-over-year in August, below the forecasted 3.7%. This had some investors trimming bets on a potential interest rate hike by the Federal Reserve next month, which saw the two-year Treasury yield fall to 4.89%, down from 4.83% earlier.

However, longer-term yields rose as concerns about high inflation and the global economy's growth prospects persisted. Worries about government debt levels also contributed to higher yields. The yield on the 10-year Treasury climbed to 5.29%, its highest in over two decades since 2002.