On October 2, 2023, U.S. stock markets exhibited mixed performance, reflecting investor concerns over inflation and potential government shutdowns. The Dow Jones Industrial Average (DJI) declined by 0.5%, closing at 33,507.5 points, with 20 of its 30 components ending in negative territory. The S&P 500 fell 0.3% to 4,288.05, while the Nasdaq Composite gained 0.1%, reaching 13,219.32. The CBOE Volatility Index (VIX) increased by 1% to 17.52, indicating heightened market uncertainty. Trading volume was higher than the 20-session average, with 11.3 billion shares exchanged. The Energy Select Sector SPDR (XLE) and the Financials Select Sector SPDR (XLF) both lost 2%, while the Consumer Discretionary Select Sector SPDR (XLY) added 0.5%. finance.yahoo.com
Investors were particularly attentive to the Personal Consumption Expenditures (PCE) inflation index, the Federal Reserve's preferred measure of inflation. The August report showed a 3.9% annual increase in core prices, marking the first time in over two years that the metric fell below 4%. While still above the Fed's 2% target, this moderation suggested that the central bank's policy tightening might be yielding results. However, the potential government shutdown added to market apprehension. House Republicans rejected a bill proposed by Speaker Kevin McCarthy to temporarily fund the government, making a partial shutdown of federal agencies likely starting Sunday. This development raised concerns about the government's creditworthiness and further weighed on investor sentiment. finance.yahoo.com