US benchmark equity indexes exhibited mixed performance throughout the trading session as market participants analyzed the latest economic data, which includes the Federal Reserve's favored inflation indices. The Nasdaq Composite index saw a decline of 0.4%, reaching a value of 18,117.7 by midday on Friday.
In a similar vein, the S&P 500 index decreased by 0.1%, settling at 5,739.7. Conversely, the Dow Jones Industrial Average experienced a slight uptick of 0.5%, reaching 42,364.2. Notably, the technology sector experienced the most significant decrease, while the energy sector emerged as a leader in gains. In terms of economic indicators, it was reported that US consumer spending witnessed a more pronounced easing than anticipated for August.
Concurrently, the Fed's preferred inflation metric rose year-over-year, aligning closely with Wall Street's forecasts, according to data from the government. The core inflation metric favored by the Fed, which intentionally omits the more volatile categories of food and energy, recorded a year-over-year increase of 2.7% last month, which is a slight progression from the 2.6% observed in July.
When analyzed sequentially, the core measure saw a minor decline to 0.1% from a previous 0.2%. "The Fed's preferred core measure continues to head in the right direction, even though base effects are boosting the yearly pace," commented TD Economics in their report. "With inflation remaining contained, the Federal Reserve will be particularly attentive to developments in the labor market, especially with the September payrolls data scheduled for release next Friday as they assess further monetary policy adjustments." In the consumer sentiment realm, it was observed that US consumer sentiment rose to 70.1 in September, up from 67.9 the previous month, according to findings from the University of Michigan.
This increase exceeded the consensus expectation of 69.4 derived from a survey conducted by Bloomberg. Trade-wise, the US two-year yield experienced a decrease of 6.2 basis points, yielding 3.56% intraday, while the 10-year yield saw a reduction of 4.2 basis points, landing at 3.75%. West Texas Intermediate crude oil prices increased slightly, by 0.1%, reaching $67.75 a barrel. Shares of Dell Technologies ($DELL) plummeted by 3.4%, marking one of the steepest declines within the S&P 500 index.
On the contrary, Lululemon Athletica ($LULU) stood out as one of the top performers in both the S&P 500 and global Nasdaq markets, surging by an impressive 4.9%. Tesla ($TSLA) is anticipated to report third-quarter vehicle deliveries that exceed analysts' expectations, largely due to its robust performance in the crucial China market, coupled with stabilization in pricing and demand.
This optimism was noted in a client communication from Wedbush Securities, leading to a 2% increase in the electric vehicle manufacturer's stock prices. On the commodity front, gold prices dipped by 1.1% to $2,666.80 per troy ounce, while silver experienced a decline of 1.8%, settling at $31.75 an ounce..