The Dow Jones Industrial Average closed September at its lowest level since early June, falling 441.03 points, or 0.86%, to 50,914.09 on the month's final session. Only eight of the index's 30 components advanced, while the Nasdaq Composite and Nasdaq 100 posted gains for the month, widening the split between technology shares and the rest of the market.
The Dow fell 441.03 points, or 0.86%, to 50,914.09, its lowest close since early June. Only eight of its 30 components advanced on the day.
September closes with a wide performance gap
The Dow dropped 4.29% for the month. The Russell 2000 fell 5.39% over the same period. The S&P 500 slipped 0.45%, but the Nasdaq Composite advanced 1.86% and the Nasdaq 100 rose 3.23%. Six of the Magnificent Seven stocks advanced on the day, led by Apple's 1.10% gain, while Meta fell 1.84%. That support helped the Nasdaq indices but did not extend to the Dow's industrial and consumer components.
Softer inflation data failed to lift the index
August core PCE inflation rose 0.2% month-on-month, below the 0.3% expected, with the annual rate at 3.0% versus 3.3% expected. Yet Treasury yields reversed an early decline to finish higher, with the 10-year yield up 3.62 basis points to 5.2912%. Technology held up considerably better than industrials and smaller companies on the day.
Elsewhere, the August goods trade deficit widened to $132.6 billion, versus $115.0 billion expected. The Atlanta Fed cut its third-quarter growth estimate to 3.7% from 5.0%. Growth remains positive, but the downgrade added a headwind for the broader market.
Fed timing shifts, but a hike still stands
Goldman Sachs moved its forecast for the next Fed rate hike from October to December. New York Fed President John Williams suggested one more increase this year may be enough if the economy develops as expected, with no urgency to act immediately after September's hike. The delay in timing leaves the hike itself on the table, keeping yields elevated for now.
Softer inflation gave the Fed room to be patient, but the Dow's narrow advance-decline count showed the relief did not reach its industrial and consumer components.
Source: investingLive
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