German Industry Employment Falls to Lowest Level in a Decade 
Japan Signals Readiness to Intervene as USD/JPY Nears 161 Amid Yen Weakness 
Asian Currencies Stabilize as Dollar Holds Near Two-Month High After Fed Hawkish Signal 
Asian Currencies Steady as Dollar Holds Firm Ahead of Fed Decision and US-Iran Deal Details 
Japan Inflation Stays Below BOJ Target Despite Rate Hike and Rising Energy Cost Risks 
Dollar Surges After Fed Holds Rates Steady, Signals Potential Tightening Ahead 
Australia Eases Capital Gains Tax Reforms to Support Small Businesses and Startups 
China’s AI Manufacturing Boom Masks Weak Consumer Economy, Citi Says 
Trump Questions USMCA Renewal as Trade Talks Continue 
Gold Prices Slide as Hawkish Fed and Strong Dollar Weigh on Bullion 
Dollar Hits One-Month High as Hawkish Fed Outlook Boosts Greenback 
Italy’s Economy Outpaces Eurozone Peers as Investment Spending Fuels Growth 
German Auto Suppliers Turn Bearish as Investment and Jobs Shift Overseas 
Russia Stocks End Flat as MOEX Index Hits New 52-Week Low; Gold Falls and Oil Mixed 
Fed Chair Kevin Warsh Signals Policy Overhaul as Hawkish Rate Outlook Rattles Markets 
Europe EV Demand Surges as Fuel Prices Rise Amid Iran Conflict 
Asian Stocks Rally as Japan and South Korea Reach Record Highs on US-Iran Peace Deal 
U.S. stocks closed higher on Friday after inflation data aligned with expectations, though all three major indexes recorded weekly declines. The S&P 500 and Nasdaq ended their three-week winning streaks, while the Dow Jones Industrial Average also slipped slightly for the week.
The Commerce Department’s personal consumption expenditures (PCE) index, the Federal Reserve’s preferred inflation measure, showed prices rose 0.3% in August and 2.7% year-over-year, matching forecasts. Personal income and consumer spending both exceeded estimates, signaling resilience in the economy. Investors are weighing these strong economic signals against expectations for further interest rate cuts following the Fed’s recent decision to lower rates for the first time since December.
Market analysts noted that investor positioning ahead of quarter-end contributed to volatility. Bruce Zaro of Granite Wealth Management described the moves as “typical quarter-end window dressing,” with further market swings expected as earnings season begins in mid-October.
Corporate earnings also drove sharp stock moves. Paccar jumped 5.2% after President Donald Trump announced fresh tariffs, including on heavy-duty trucks, while Eli Lilly gained 1.4% despite tariffs on branded pharmaceuticals. Electronic Arts soared 14.9% on reports it may go private. Conversely, Costco shares slid 2.9% following earnings results.
For the day, the Dow rose 0.65% to 46,247.29, the S&P 500 added 0.59% to 6,643.70, and the Nasdaq climbed 0.44% to 22,484.07. However, weekly losses stood at 0.2% for the Dow, 0.3% for the S&P 500, and 0.7% for the Nasdaq.
Investors also absorbed comments from Fed officials. Richmond Fed President Thomas Barkin expressed doubts about inflation forecasts given tariff impacts, while Vice Chair Michelle Bowman stressed the need for proactive action to support a weakening labor market. The upcoming September jobs report and the looming threat of a government shutdown are expected to add further uncertainty to markets.
Meanwhile, market breadth was positive, with advancing stocks outnumbering decliners on both the NYSE and Nasdaq. Trading volume reached nearly 17 billion shares, slightly below the recent 20-day average.
