30th September 2026 – (New York) US stocks gained on Wednesday after fresh inflation figures signalled a further easing in price pressures, pulling Treasury yields off recent highs and lifting risk appetite into the month‑end and quarter‑end close. The Dow Jones Industrial Average added 53 points, or 0.1 per cent, while the S&P 500 rose 0.4 per cent and the Nasdaq Composite climbed 0.6 per cent.
The personal consumption expenditures price index showed headline inflation running at 3.4 per cent year on year in August, down from 3.7 per cent in July and softer than economists had expected. Core PCE, which strips out food and energy and is closely watched by the Federal Reserve, eased to 3.0 per cent from 3.3 per cent, also below consensus.
Government bond yields fell after the release. The 10‑year Treasury yield, which had touched its highest level since 2007, retreated to 5.23 per cent, and the 30‑year yield also pulled back from peaks last seen in June 2002. Higher yields have weighed on equities through September, leaving the S&P 500 down 0.2 per cent for the month as of Tuesday’s close.
Interest‑rate expectations moderated alongside the data. The CME FedWatch gauge indicated a 35 per cent probability of a quarter‑point rise at the next policy meeting, down from 51 per cent a day earlier, though futures still imply a further increase in December. “While today’s inflation data is somewhat better than expected, strong labour and GDP data suggest the print is unlikely to derail consensus expectations for another rate hike before the end of the year,” said Adam Hetts, Global Head of Multi‑Asset and Portfolio Manager at Janus Henderson Investors.
A stronger snapshot of private hiring helped temper the disinflation narrative. ADP estimated that 90,000 jobs were added in September, ahead of the 68,000 consensus and well above August’s downwardly revised 36,000, keeping attention on Friday’s official payrolls report.
In stocks, Micron led early tech gainers ahead of results due after the closing bell, up about 1 per cent, with Nvidia and Alphabet also firmer. Boeing advanced roughly 2 per cent after securing a US Department of Defence contract worth about $20 billion to develop the Sixth‑Generation F/A‑XX Strike Fighter, while Northrop Grumman, previously in contention, fell 3.5 per cent. Moderna dropped more than 6 per cent after Citi cut the shares to sell and set a price target about 60 per cent below Tuesday’s close, citing valuation concerns.
Investor tone remained cautious into quarter‑end. Adam Parker of Trivariate Research told clients he is “a shade more negative” on US equities week on week, pointing to policy uncertainty and emerging worries around data‑centre dynamics, and suggested Micron may need an outsized earnings beat to be rewarded.
