Dow Tumbles Over 4% Amid Cooling Inflation and Mixed Consumer Spending Data

The Dow Jones Industrial Average tumbled over 4% in September to close at its lowest level in more than three and a half months, ending a five-month winning streak.

The decline was sparked by cooling inflation data, which saw the U.S. August PCE price index rise 3.4% year-over-year, below expectations, and significantly pare back market bets on an October rate hike.

However, robust consumer spending data and an upwardly revised second-quarter GDP kept investors on edge, leading to mixed results for U.S. stocks on Wednesday.

Mega-cap tech names Microsoft, Apple, and Nvidia provided support, while Moderna slumped 5.3% after a Citi downgrade.