US stocks opened higher on Wednesday, September 30 after latest economic data showed that inflation slowed in August, pushing Treasury yields lower.
Nasdaq Composite rose 0.49% to 26,929.32, S&P 500 advanced 0.36% to 7,698.61, while Dow Jones Industrial Average surged 0.09% to 51,407.48 by 9:31 am ET or 7:01 pm IST.
The personal consumption expenditures price index rose 3.4% in August, down from 3.7% the month prior, according to data released by U.S. Bureau of Economic Analysis (BEA) on Wednesday. The 10-year Treasury yield fell from its highest level since 2007 after the latest data was released and stood at 5.23%. The 30-year Treasury yield declined from levels last recorded in June 2002. Growing yields have weighed on stocks during multiple sessions this month.
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Meanwhile, US Fed Reserve officials are eyeing inflation and spending data as they assess the possibility of raising interest rates again, after hiking them in September 20267 for the first time in three years.
The September jobs report and additional data on inflation and consumers is expected to provide a more clearer picture of the economy ahead of the Fed's interest rate decision on October 28.
Along with personal consumption expenditure data, BEA released wide-ranging annual data on gross domestic product, spending and inflation data, along with some methodological changes in the way inflation is calculated.
GDP rose 2.2% seasonally adjusted annual rate in the second quarter, up from a previously reported 1.5%. Consumer spending rose at the fastest pace since the end of 2024. Economic growth in the first quarter was also revised higher.
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