Stock Market Mixed as Investors Digest Fed's Preferred Inflation Gauge and Economic Data

The US stock market saw mixed results on Wednesday as investors digested the latest economic data and the Federal Reserve's preferred inflation gauge.

The Dow Jones index fell, while the Nasdaq 100 index rose following Tuesday's lower close. The August economic data showed a rise in personal income by $66.6 billion and consumer spending jumping by roughly 0.9%, or $190.8 billion.

Advanced Micro Devices Inc. (AMD) saw a 0.29% gain after announcing the acquisition of AI startup World Labs for $8.2 billion. Meanwhile, FingerMotion Inc. (FNGR) surged 28.32% in premarket trading after announcing plans to acquire 100% of Newbit Technology.

Economist Professor Jeremy Siegel emphasized that the US economy's surprising strength is shifting investor focus towards surging real interest rates, which may lead to additional rate hikes by the Federal Reserve before year-end.