Finance

The August Personal Consumption Expenditures price index reported a lower-than-expected monthly increase, with core inflation rising 0.2% compared to forecasts of 0.3%. While the data briefly sparked optimism and lowered the immediate probability of an October interest rate hike, annual core inflation remains stuck at 3.0%. The initial equity market rally faded as underlying details showed persistent price pressures that keep the Federal Reserve's long-term objectives challenged.

Bond yields and energy markets continue to experience upward pressure due to a resilient domestic economy and the ongoing conflict with Iran. The 10-year Treasury yield advanced to 5.29%, hovering near historical multi-decade highs, while international benchmark Brent crude held steady near the $100 per barrel mark. This combination of rising borrowing costs and stubborn energy prices continues to weigh heavily on corporate equity valuations, particularly within non-tech sectors.

Despite broad macroeconomic headwinds, major technology firms continue to find support from robust artificial intelligence spending. Chipmaker Nvidia advanced following the launch of a new AI safety platform and an unprecedented $150 billion share buyback program, while Micron Technology posted a solid financial outlook late in the session. These individual sector strengths allowed the tech industry to outperform the broader market and secure a positive monthly return.