Financial News September 30, 2026: Stocks Rise as PCE Inflation Cools

Technology shares advanced Wednesday after the Federal Reserve’s preferred inflation measure came in below forecasts. Stronger revised economic growth and stubbornly high long-term Treasury yields complicated the outlook as markets closed a turbulent quarter.

By North American Talk Radio Staff | September 30, 2026

Market information is current as of approximately 2:45 p.m. Eastern on Wednesday, September 30. Wednesday’s U.S. stock, bond, commodity, currency and cryptocurrency sessions remained underway. Tuesday’s U.S. closes and Wednesday’s completed European and Asian results are identified separately.

Wall Street moved higher Wednesday after a softer-than-expected inflation report reduced expectations for another Federal Reserve rate increase in October.

The Personal Consumption Expenditures Price Index increased 3.4% from one year earlier in August. Economists surveyed by Reuters had expected 3.7%. Meanwhile, revised government figures showed the U.S. economy grew at a 2.2% annual rate during the second quarter, considerably faster than the previous 1.5% estimate.

The combination gave investors two encouraging signals: inflation was lower than feared, while economic growth remained resilient. However, the 10-year and 30-year Treasury yields continued climbing toward multidecade highs, limiting the broader market’s advance.

S&P 500 and Nasdaq Rise After PCE Report

The S&P 500 was up approximately 0.4% during Wednesday afternoon trading. The Nasdaq Composite gained about 0.9%, while the Dow Jones Industrial Average declined roughly 0.3%, according to The Associated Press.

ETF prices near 2:45 p.m. confirmed the divergence. The SPDR S&P 500 ETF gained approximately 0.3%, and the Invesco QQQ Trust added about 0.7%. The SPDR Dow Jones Industrial Average ETF fell roughly 0.4%.

Apple, Amazon, Nvidia and Alphabet supported the technology-led advance. Hewlett Packard Enterprise gained more than 5% after improving its outlook and announcing an agreement with cloud-computing provider Vultr.

Moderna fell nearly 6% after Citigroup downgraded the biotechnology company. Cal-Maine Foods declined after quarterly results missed expectations as egg prices and sales fell.

Tuesday’s Completed Wall Street Results

U.S. stocks completed Tuesday’s session modestly lower. The S&P 500 lost 12.85 points, or 0.17%, to 7,670.84. The Dow fell 131.59 points, or 0.26%, to 51,349.92. The Nasdaq Composite declined 22.84 points, or 0.09%, to 26,797.54.

Higher long-term Treasury yields outweighed falling oil prices and strength among selected AI companies. Consumer confidence also dropped to its lowest level since 2014, while job openings declined to 7.079 million. Reuters reported Tuesday’s completed market results.

PCE Inflation Falls Below Expectations

The PCE price index rose 3.4% over the 12 months ended in August, below the 3.7% Reuters consensus. Core PCE, which excludes food and energy, increased 0.2% during the month and approximately 3% from one year earlier.

Consumer spending rose 0.9% in August, partly reflecting higher gasoline prices. Personal income increased 0.2%, meaning spending grew substantially faster than income.

The inflation report did not show that price pressure has disappeared. Both headline and core inflation remain above the Fed’s 2% objective. Nevertheless, the lower-than-expected reading reduced the immediate need for another increase after policymakers raised the federal-funds target earlier in September.

Interest-rate markets lowered the probability of an October hike to approximately 39%, down from 71% one week earlier. Reuters detailed the inflation report and market reaction.

U.S. Economic Growth Revised Up to 2.2%

The Bureau of Economic Analysis revised second-quarter GDP growth to an annualized 2.2%, up from its previous 1.5% estimate. First-quarter growth was also revised higher to 2.5% from 2.1%.

Consumer spending increased at a 3.8% annualized rate during the second quarter. Business investment also strengthened, particularly spending connected to AI infrastructure and computing capacity.

Final sales to private domestic purchasers—a measure of demand excluding government spending, inventories and trade—rose at a 4.6% rate. Gross domestic income increased 2.6%, while the average of GDP and GDI grew 2.4%.

The revision showed that the economy entered the second half of 2026 with more momentum than previously believed. However, rapid growth can also keep inflation elevated and reinforce upward pressure on long-term yields. Reuters reported the revised GDP figures.

Long-Term Treasury Yields Keep Rising

The inflation report pushed the two-year Treasury yield lower because it is especially sensitive to expectations for near-term Fed policy. However, longer maturities moved in the opposite direction.

The 10-year yield reached approximately 5.30%, while the 30-year yield climbed near 5.64%, its highest level since 2002. Investors continued demanding greater compensation for inflation, government borrowing and the risk that strong economic growth will keep rates elevated.

The divergence matters. The Fed may pause in October, but mortgages, corporate bonds and infrastructure financing could remain expensive if long-term yields stay above 5%.

The 10-year yield increased roughly 80 basis points during the third quarter, while the 30-year yield gained approximately 65 basis points. The quarter produced the sharpest increase in the benchmark 10-year yield since 2016.

Oil Rises but Remains Below Recent Highs

Oil prices rose Wednesday after declining more than 2% Tuesday. Brent crude gained roughly 1% to 2% during parts of the session, although it remained below recent highs.

Middle East petroleum exports have shown signs of improvement, but the Strait of Hormuz remains vulnerable to further attacks and diplomatic breakdowns. Diesel prices also remain historically high, keeping transportation and distribution costs elevated.

Oil rose nearly 14% during September and approximately 40% during the third quarter. That increase helps explain why central banks remain cautious even after Wednesday’s PCE report came in below forecasts.

Europe Records First Monthly Loss Since March

The STOXX Europe 600 completed Wednesday’s session 0.5% lower. The index lost 2.5% during September, its first monthly decline in six months, and fell approximately 1% for the third quarter.

Energy shares declined 0.9% Wednesday but gained 2.7% for the month. Banks, industrial companies and insurers also finished lower as elevated bond yields and imported-energy costs weighed on valuations.

British utilities advanced after supportive government policy announcements. Pennon, SSE and National Grid gained between approximately 2% and 2.6%.

Greggs jumped 8.2% after improving its profit outlook. German inflation reached its highest level since December 2023, reinforcing expectations that the European Central Bank will remain cautious. Reuters published the completed European market results.

Japan Leads Asian Markets Higher

Japan’s Nikkei completed Wednesday’s session approximately 1.9% higher as lower oil prices and strength among chipmakers, banks and metal producers improved sentiment.

The rally contrasted with Europe’s decline and reflected Japan’s sensitivity to petroleum costs. Lower oil reduces the country’s import bill, while optimism about semiconductor demand supported technology shares.

Chinese business surveys showed improved activity, but investors remained cautious about property weakness, restrictions involving AI infrastructure and the limited public results from last week’s Trump–Xi summit.

MongoDB Expands Buyback; Micron Earnings Awaited

MongoDB gained approximately 4.8% after announcing a $1 billion share-repurchase program. The move provided support following Monday’s sharp decline caused by the abrupt departure of chief executive Chirantan “CJ” Desai for a senior role at Meta Platforms.

Investors also awaited Micron Technology’s results after Wednesday’s close. The report will provide another test of demand for memory chips used in AI servers and data centers.

AI spending remained a powerful support for economic growth and stock valuations during the third quarter. At the same time, technology companies have issued approximately $220 billion of bonds this year to finance processors, cloud infrastructure and electricity supplies. Rising yields are therefore increasing the cost of sustaining that expansion.

Dollar Eases; Gold and Bitcoin Recover

The dollar weakened after the softer inflation report reduced expectations for an October Fed increase. The Dollar Index had entered Wednesday near 101.38 after reaching a two-month high earlier in the week.

Gold recovered above $4,200 per ounce but remained on course for a monthly loss near 6%. Elevated long-term yields continued limiting bullion’s advance because gold pays no interest.

Bitcoin traded near $83,918 at approximately 2:45 p.m. Eastern, up about 0.4%. It moved between roughly $82,951 and $85,518 during the session. Bitcoin gained during September despite the global bond selloff.

Third Quarter Leaves Stocks Resilient and Bonds Bruised

World equities ended the third quarter more than 12% higher for 2026 and within approximately 2% of their record high. Strong corporate earnings and AI investment helped stocks absorb oil above $100 and borrowing costs not seen in nearly two decades.

Bond investors had a much more difficult quarter. Yields climbed across the United States, Europe and Japan as markets adjusted to persistent inflation and renewed central-bank tightening. Oil gained roughly 40% during the quarter, while currencies experienced unusually large movements and coordinated intervention to support the yen.

Financial Market Outlook

Wednesday’s reports reduced the risk of an immediate Fed increase without removing the market’s longer-term concerns. Inflation remains above target, economic growth is stronger than previously reported and government borrowing continues pressuring long-term bonds.

• Friday’s September employment report.
• Micron Technology’s results and AI-demand guidance.
• The 10-year Treasury yield’s ability to remain below 5.3%.
• Oil shipments through the Strait of Hormuz.
• October Federal Reserve rate expectations.
• Whether technology leadership broadens into other market sectors.

The softer PCE reading gave stocks relief. However, a durable fourth-quarter rally will probably require more than one favorable inflation report. Investors will also need stable oil prices, calmer bond markets and evidence that economic growth can continue without another acceleration in inflation.