Stock Market Today: S&P 500, Nasdaq Rise on Softer PCE Inflation

What happened

The S&P 500 and Nasdaq rose after softer August PCE inflation data. The softer inflation reading reduced the chances of an October Federal Reserve rate hike and pushed Treasury yields lower.

Confirmed

Global impact / market context

Lower odds of a rate hike and falling Treasury yields can reduce borrowing costs for companies and households. That can support stock prices because investors expect better profits and are willing to pay more for future earnings.

Analyst inference

This moves markets because inflation data shapes what the Federal Reserve does with interest rates. When inflation cools, investors often shift money toward stocks, especially technology and growth shares, and away from bonds as yields fall.

Analyst inference

What to watch

1. Watch the next Federal Reserve meeting for any decision on interest rates. A rate decision directly affects borrowing costs and can move stock and bond prices. Confirmed
2. Watch for upcoming inflation reports to see if price pressures keep cooling. Continued cooling could strengthen the case for holding rates steady rather than raising them. Proposed
3. Watch Treasury yields as a signal of investor expectations. If yields keep falling, borrowing costs may ease and support stock valuations, particularly for technology and growth companies. Analyst inference

Evidence

• coinpaper.com