New York Stock Exchange Ends on Mixed Note Amid Slowing Inflation

The New York Stock Exchange (NYSE) ended on a mixed note on the 27th (local time) due to the slowdown in inflation and pressure from the high point.

The Dow closed trading at 42,313.00, up 137.89 points (0.33%) from the previous trading session. The S&P 500 index ended trading at 5738.17, down 7.20 points (0.13%) from the previous day, and the Nasdaq Composite Index ended trading at 18,119.59, down 70.70 points (0.39%) from the previous day.

US economic indicators signaled a calming trend in inflation, leading to the view that the U.S. economy could make a soft landing. This led to a buying trend centered on consumption-related and economically sensitive stocks. However, as the stock market was soaring this week, it was an environment in which it was easy to sell semiconductors and technology stocks at a profit.

The U.S. personal consumption expenditures (PCE) price index increase rate in August was 0.1% compared to the previous month and 2.2% compared to the same period last year. This figure is lower than the increase rate in July (2.5% compared to the same period last year) and also fell short of the market expectation of 2.3%. The core PCE price index excluding food and energy also rose 0.1% compared to the previous month, which was lower than the previous month and the market expectation (0.2% increase) released by Dow Jones Communications.

Art Hogan, chief market strategist at B Riley Asset Management, expressed the view that “(in response to the trend of slowing inflation), the U.S. Federal Reserve will continue to cut interest rates to support a soft landing for the U.S. economy.” At the Federal Open Market Committee (FOMC) in November, speculation grew stronger that the Federal Reserve would decide to cut interest rates by 0.50 percentage points twice in a row.

The confirmed consumer sentiment index for September announced by the University of Michigan in the United States was 70.1, which was revised upward from the preliminary value (69.0) and exceeded market expectations (69.3). Quincy Crosby, chief global strategist at LPL Financial, analyzed, “As consumer sentiment has improved, concerns surrounding consumption have decreased.”

By industry, energy showed strength, jumping more than 2%. Utilities also rose by more than 1%. On the other hand, technology lagged by nearly 1%. The remaining industries moved in a flat range.

The Chicago Board Options Exchange (CBOE) volatility index (VIX) recorded 16.96, up 1.59 points (10.34%) from the previous day.