Stocks Give Back Gains in Final Stretch of September — US Market Wrap

Wall Street had a new round of turbulence in the final hour of trading, with equities erasing gains that had been spurred earlier by slower-than-expected inflation statistics. The S&P 500 remained relatively unchanged. Short-term Treasury yields scarcely moved, while 30-year bond yields stayed at their highest levels since 2002. Money markets currently predict a less than 40% possibility of a Federal Reserve interest rate hike in October. The dollar weakened at the end of its best month since June. Oil remained near $100. The PCE price index, excluding food and energy, the central bank's preferred measure of underlying inflation, increased by a smaller-than-expected 0.2% in August. The preceding month was also revised downward. US consumer spending increased in August at its fastest pace in more than a year, helping support the economy despite persistent inflation. Meanwhile, companies boosted hiring in September, another indication that the economy may be gaining momentum. The government’s employment report due Friday, which includes public-sector hiring, is expected to show employers added a solid 90,000 jobs in September.