S&P 500 dips after US inflation data, ending weak third quarter
stocks.
The S&P 500 and Nasdaq posted their biggest monthly percentage drops of the year, while all three major indexes had their first quarterly declines in 2023.
Data showed the personal consumption expenditures (PCE) price index, excluding the volatile food and energy components, increased 3.9% on an annual basis for August, the first time in over two years it had fallen below 4%. The Fed tracks the PCE price indexes for its 2% inflation target.
Stocks had pushed higher initially after the PCE report but then faded.
The data revealed a «better than expected but still elevated inflation picture,» said Eric Freedman, chief investment officer at U.S.
Bank Asset Management.
Meanwhile, Freedman said, «we are at quarter end, and with quarter end comes all sorts of activities across both the stock and bond markets.»
The Dow Jones Industrial Average fell 158.84 points, or 0.47%, to 33,507.5, the S&P 500 lost 11.65 points, or 0.27%, to 4,288.05 and the Nasdaq Composite gained 18.05 points, or 0.14%, to 13,219.32.
Among S&P 500 sectors, energy slumped about 2% and financials declined 0.9%. Energy remained by far the biggest-gaining sector for the third-quarter.
«Energy and financials have been up on a relative basis and they are feeling some rebalancing effect today,» Freedman said.
For the quarter, the S&P 500 fell about 3.6%, the Dow lost 2.6%, the Nasdaq shed 4.1%.
