US Stocks Climb as Inflation Holds Steady at 3.4%

On October 1, 2026, US stocks experienced an uptick after a stable inflation reading, with the US Federal Reserve’s preferred inflation gauge remaining at 3.4% year-on-year for August, unchanged from July following a revision. The inflation rate, while lower than anticipated, still exceeds the Fed’s target level.

Approximately 20 minutes into trading, the Dow Jones Industrial Average increased by 0.1% to 51,386.46, the S&P 500 rose by 0.4% to 7,699.89, and the Nasdaq Composite Index advanced by 0.6% to 26,958.66. Steve Sosnick from Interactive Brokers remarked that any positive news regarding inflation is interpreted favorably.

Additionally, private sector job growth was reported at 90,000 for the previous month, significantly higher than the 38,000 jobs added in the prior month and surpassing market expectations. The US Commerce Department also revised its estimate for second-quarter GDP growth upward by 0.7 percentage points to 2.2%.