Nasdaq Leads Wall Street Higher as Softer Inflation Cools Rate-Hike Fears
What Happened
US markets opened mixed but strengthened through the session after the Federal Reserve's preferred inflation gauge (PCE) came in below expectations. The annual PCE inflation rate was 3.4% versus estimates of 3.7%, boosting hopes that the Fed may hold off on another rate hike. Technology stocks led the rally, with gains in major names such as Apple, Microsoft and Alphabet.
Key Takeaways
As of 11:50 a.m. ET (9:19 p.m. IST) on September 30, the Nasdaq was up 1.07%, the S&P 500 had gained 0.59%, while the Dow Jones was down 0.06%. Markets were being driven by easing inflation concerns, which reduced expectations of an immediate Fed rate hike and sparked buying in growth and technology stocks.