The Dow Jones Industrial Average closed lower on Friday (Sept. 30) on pressure following the US released higher-than-expected inflation data. This will be a factor supporting the Federal Reserve (Fed) to raise interest rates once more. And it makes investors worried that the economy will face a recession.
The Dow Jones Industrial Average closed at 28,725.51, down 500.10, or -1.71%, the S&P500 closed at 3,585.62, down 54.85, or -1.51%, and the Nasdaq closed at 10,575.62, down 161.89, or -1.51%.
The Dow and S&P 500 closed at their lowest levels since November. 2020, while the Nasdaq closed at its lowest level since July 29, 2020.
In September, the Dow was down 8.8 percent, the S&P500 was down 9.3 percent and the Nasdaq was down 10.5 percent. In the third quarter, the Dow was down 6.7 percent, the S&P 500 was down 5.3 percent and the Nasdaq was down 4.1. %
US stock markets are under pressure. After the US Department of Commerce said on Friday (Sept. 30) that the personal consumption expenditures (PCE) price index, which does not include food and energy category. It is the Fed’s key gauge of inflation, up 4.9 percent year-on-year in August. And higher than analysts’ expectations of 4.7 percent from 4.7 percent in July. And month-on-month, the core PCE index rose 0.6 percent in August and beat analysts’ expectations of 4.7 percent. 0.5% following being stable in July
The PCE Index is a measure of inflation that can detect changes in consumer behavior. And it covers a broader range of prices for goods and services than the Consumer Price Index (CPI) data from the US Department of Labor.
The market was also pressured by growing concerns regarding the recession. After listed companies such as Nike and Carnival announced profit warnings. This was a result of high inflation, with Nike and Carnival stocks falling 12.8 percent and 23.3 percent, respectively.
Ten of 11 stocks in the S&P500 index fell, with real estate the only gaining. While the tech sector fell the most by percentage. Shares of Apple, Microsoft, and Amazon weighed the most.
Investors will keep an eye on the listed companies’ third-quarter earnings releases in the coming weeks. which analysts expected to have a downward trend
analysts expected Third-quarter consolidated results of the S&P 500 companies will grow 4.5% year-on-year. It was 11.1% lower than the previous estimate at the start of the third quarter.
