What is causing markets to end the week on a negative note in the US, signaling the conclusion of a challenging September?

U.S. stocks ended the week with declines across various sectors, except for the energy sector. This negative performance is set to conclude the month of September as the worst-performing month for the broader market since December 2022. The Federal Reserve’s inflation measure for August yielded subdued results but failed to maintain a positive market sentiment. Concerns about a government shutdown continue to weigh on risky assets. New York Federal Reserve Chair Williams expects a moderation in GDP next year, a decrease in inflation this year, and the Federal Reserve nearing its peak for the federal funds rate. On Friday, the S&P 500 and Dow both experienced losses, while tech stocks relatively outperformed. Small-cap stocks in the Russell 2000 also declined. Analysts believe the current weakness in the market is normal and necessary for a new surge higher. Nike’s stock climbed after beating earnings estimates, and Blue Apron announced a deal to acquire Wonder. Crude oil and treasury yields were flat, while the dollar slightly rose. European equity indices had a mixed session, and gold and silver prices fell.