Wall Street finished the final session of the third quarter with a split result on Wednesday, as investors weighed softer inflation data against signs of continued economic strength and persistently high Treasury yields.
The S&P 500 fell 0.3% to 7,651.54 and the Dow Jones Industrial Average dropped 0.9% to 50,906.05. The Nasdaq Composite moved in the opposite direction, gaining 0.2% to 26,861.06. The Russell 2000 slipped 0.4% to 2,796.86.
Inflation relief was offset by stronger growth signals
Stocks opened with support from a softer-than-expected U.S. inflation reading, which reduced expectations that the Federal Reserve would raise rates again as soon as October. That early optimism faded as other economic data pointed to resilient consumer spending and growth.
Long-term Treasury yields remained a major pressure point. The 10-year yield has climbed sharply through September and stayed near levels not seen since before the global financial crisis, raising financing costs and weighing on rate-sensitive stocks.
Quarterly gains survived a difficult September
Despite the volatility, the S&P 500 and Nasdaq both posted gains for the July-to-September quarter, while the Dow ended the quarter lower. The broader picture has been defined by strong large-cap technology earnings on one side and a sharp global bond selloff on the other.
For 2026 so far, U.S. equity indexes remain higher overall. The S&P 500 is up 11.8% for the year, the Dow 5.9%, the Nasdaq 15.6% and the Russell 2000 12.7%, according to AP’s market close data.
Investors enter Q4 focused on rates and earnings
Markets now move into the fourth quarter with the Federal Reserve path, energy prices and corporate earnings still in focus. Rising crude prices continue to complicate the inflation outlook, while the AI-led technology trade remains an important source of support for major indexes.
Sources: Associated Press; Reuters.
