WS News
30 Sep 2026, 14:04
U.S. Stocks Rise as Softer PCE Inflation Offsets Stronger Growth and Jobs Data
U.S. stocks moved higher on Wednesday as investors welcomed softer-than-expected inflation readings alongside signs that the economy remains resilient. The S&P 500 rose 0.52%, the Dow Jones was nearly flat with a 0.03% gain, while the Nasdaq climbed 0.94%, leading the major indexes.
The August PCE price index rose 3.4% year over year, below the 3.7% expected, while monthly inflation came in at 0.3% versus the 0.4% consensus. Core PCE was also softer than forecast, rising 3.0% annually compared with expectations of 3.3%, while the monthly increase of 0.2% was below the 0.3% estimate.
At the same time, economic activity remained firm. Second-quarter GDP growth was revised to 2.2%, above the 1.5% consensus and the previous 2.1% estimate. ADP private payrolls increased by 90,000 in September, beating expectations of 73,000 and accelerating sharply from 36,000 previously.
Manufacturing activity provided another upside surprise, with the Chicago PMI jumping to 58.8 in September from 47.1, well above the 51.2 forecast and moving firmly into expansion territory.
The market reaction reflects a favorable combination for equities: inflation came in cooler than feared while employment, GDP and business activity remained relatively strong. The softer PCE readings appear particularly supportive for technology and other growth stocks, helping explain the Nasdaq’s outperformance despite the stronger economic data.
U.S. stocks moved higher on Wednesday as investors welcomed softer-than-expected inflation readings alongside signs that the economy remains resilient. The S&P 500 rose 0.52%, the Dow Jones was nearly flat with a 0.03% gain, while the Nasdaq climbed 0.94%, leading the major indexes.
The August PCE price index rose 3.4% year over year, below the 3.7% expected, while monthly inflation came in at 0.3% versus the 0.4% consensus. Core PCE was also softer than forecast, rising 3.0% annually compared with expectations of 3.3%, while the monthly increase of 0.2% was below the 0.3% estimate.
At the same time, economic activity remained firm. Second-quarter GDP growth was revised to 2.2%, above the 1.5% consensus and the previous 2.1% estimate. ADP private payrolls increased by 90,000 in September, beating expectations of 73,000 and accelerating sharply from 36,000 previously.
Manufacturing activity provided another upside surprise, with the Chicago PMI jumping to 58.8 in September from 47.1, well above the 51.2 forecast and moving firmly into expansion territory.
The market reaction reflects a favorable combination for equities: inflation came in cooler than feared while employment, GDP and business activity remained relatively strong. The softer PCE readings appear particularly supportive for technology and other growth stocks, helping explain the Nasdaq’s outperformance despite the stronger economic data.
