S&P 500 and Dow fall as Wall Street heads for sharp September losses: Live updates

The Dow Jones Industrial Average retreated on Friday as investors looked to the end of a tough month.

The blue-chip average lost 126 points, or 0.4%, led down by Travelers Companies and Walmart. The S&P 500 dropped 0.1%, while the Nasdaq Composite advanced 0.4%.

Nike shares rallied more than 6% after the apparel giant reported fiscal first-quarter earnings that beat analyst expectations.

The Dow and S&P 500 were higher earlier in the day, as traders cheered data showing inflation may be easing. The latest reading of the personal consumption expenditures price index, which is the Federal Reserve’s preferred inflation metric, came Friday morning.

So-called core PCE, which strips out volatile food and energy prices, rose 0.1% in August and 3.9% annually. Economists polled by Dow Jones expected that the core PCE would advance 0.2% on a monthly basis and 3.9% year over year.

“Wall Street is welcoming all data that prevents the Fed from overtightening and if it allows traders to hold onto soft-landing hopes,” said Ed Moya, senior market analyst at Oanda.

The Dow and S&P 500 are set to end the week down 1.2% and 0.6%, respectively. The Nasdaq Composite should finish 0.3% higher.

The market is expected to see sharp losses for the trading month and quarter, both of which also conclude with Friday’s close.

The S&P 500 is set to finish the month down 4.7% and the quarter lower by 3.4%. The Nasdaq Composite is off 5.6% in September, and down 4% for the quarter. Both are on track to post their worst months this year. The Dow is on track for a 3.3% decline this month and a 2.5% fall for the quarter.

“Stocks have declined too much and too fast during this seasonally volatile time of the year driven by a long list of worries,” said Carol Schleif, CIO of the BMO Family Office. “The market only a few months ago was worry free amid the belief that the Fed could engineer a soft landing, and now the market’s worry closet door is wide open as investors raise questions about the economic outlook.”

Investors also remained concerned about the potential for a government shutdown. House Speaker Kevin McCarthy criticized a a short-term funding bill from the Senate in an interview with CNBC on Thursday.