In a bad quarter for markets, U.S. stocks were mixed on Friday, with the Nasdaq Composite being the only major index to make marginal gains. However, all indexes experienced losses for the quarter. Europe’s Stoxx 600 also saw a 2.9% decrease for the quarter, marking its worst quarterly performance in a year. Additionally, euro zone inflation fell to 4.3% in September, which is the lowest annual figure since October 2021.
The personal consumption expenditure (PCE) index for August saw a 0.4% increase for the month, and a 3.5% increase compared to the previous year. The core PCE, which excludes food and energy, rose by an expected 3.9% and a lower-than-forecasted 0.1% for the month. The PCE is the Federal Reserve’s preferred measure of inflation as it takes consumer behavior into account.
The United Auto Workers union expanded its strikes on Friday, halting work at another Ford plant and an additional GM plant. Approximately 6,900 more autoworkers joined the approximately 18,300 already on strike. However, Stellantis was spared from additional strikes due to significant progress made in negotiations with the union.
Despite a cooler-than-expected core PCE reading, which saw an increase of only 0.1% for the month, investor sentiment remained low. Stocks mostly fell on Friday, with the S&P 500 and Dow Jones Industrial Average experiencing losses, while the Nasdaq Composite saw marginal gains. All three indexes ended September in the red, with the S&P and Nasdaq marking their worst monthly performance since December. On a quarterly basis, the numbers showed slight improvement but still indicated a challenging month for stocks.
