• Wall Street ended mixed on September 27, with the DJIA closed up by +0.33%, while S&P 500 and Nasdaq closed down by -0.13% and -0.39%, respectively.
• The Dow Jones reached a record high, while the S&P 500 and Nasdaq ended lower. Softer US spending and income data, along with the expected core PCE, lowered T-note yields, supporting stocks. However, a dip in chip stocks dragged the Nasdaq and broader market lower.
• The 10-yr UST yield fell by -4.0 bps to 3.75%, while the 2-yr yield slidby -5.0 bps to 3.55%. T-notes rose on weak August US spending and income data, with core PCE in line with expectations. Gains faded after September’s consumer sentiment was revised higher.
• The US PCE price index rose 2.2% YoY in August 2024, its lowest since February 2021, down from 2.5% YoY in July 2024 and below the 2.3% forecast. Conversely, the core PCE edged up to 2.7% YoY from 2.6% YoY.
• US personal spending rose by 0.2% MoM in August 2024, down from 0.5% in July and just below the 0.3% forecast. Personal income also increased 0.2% MoM, following a 0.3% rise in July, missing expectations of 0.4%.
• Meanwhile, Eurozone economic sentiment remained broadly stable, edged down to 96.2 in September 2024 from 96.5 in August, the highest in over a year, and slightly below the 96.5 forecast.
• Global bond yields were mixed on Friday, with the 10-yr German bund yield declined by -5.0 bps to 2.13%, the 10-yr UK gilt yield fell by -3.3 bps to 3.97%, while the 10-yr Japanese JGB closed up +2.2 bps to 0.85%.
