Dow falls over 570 points despite softer inflation print
In short
The Dow Jones dropped more than 570 points from its highs after the August PCE inflation number came in softer. The report says traders now see a 38% chance of a 25-basis-point Fed hike in October, down from 70% two days earlier.
This matters because lower rate expectations can move stocks and bonds fast. The report does not say the final closing level of the Dow or what else drove the selloff.
What the reporting says
The Dow Jones fell more than 570 points from its highs after a softer August PCE inflation reading, according to the market report. The summary says that reading lowered the chance of a 25-basis-point Fed rate hike in October to 38% from 70% two days earlier, and that New York Fed President John Williams had already signaled there was no rush to raise rates. The report does not give the exact Dow level or explain the full intraday reversal.
Why it matters
The Dow Jones fell over 570 points from its highs even after a softer August PCE inflation print reduced expectations for a 25-basis-point Fed rate hike in October to 38% from 70% two days earlier. The move followed remarks from New York Fed President John Williams that there was no rush to raise rates. The report does not identify other specific drivers of the reversal.