Market Outlook: Uncertain September Sell-Off, Potential October Bounce

U.S. stocks ended the quarter in the red, with the Nasdaq Composite being the only major index to see a slight increase. Europe's Stoxx 600 also experienced its worst quarterly performance in a year. Euro zone inflation fell to 4.3% in September, the lowest since October 2021. The personal consumption expenditure index for August rose 3.5% from a year ago, while core PCE increased by 3.9%. The U.S. Senate passed a spending bill to avoid a government shutdown, but only temporarily. The United Auto Workers union expanded its strikes, with more autoworkers joining the picket lines. This week will focus on the labor market, with the release of the Job Openings and Labor Turnover Survey and the September jobs report. Despite a cooler-than-expected core PCE reading, stocks fell in September, but analysts suggest that the market may be oversold and could potentially bounce back in October, historically a winning month for stocks.