Business

Nasdaq and S&P 500 hit fresh highs

NYSE traders Image copyright Reuters

Wall Street rounded out the last trading day of September on a positive note, with both the Nasdaq and the S&P 500 index hitting fresh highs.

By the close the S&P 500 had risen 9.3 points to 2,519.36 while the Nasdaq index climbed 42.51 points to 6,495.96.

The Dow Jones industrial average closed up 23.89 points, or 0.1%, at 22,405.09

US markets seemed unfazed by the latest inflation and consumer spending figures.

Consumer spending rose by just 0.1% last month, the Commerce Department said, reflecting the impact of Hurricane Harvey.

Reports of President Donald Trump's meeting with former Federal Reserve Governor Kevin Warsh to discuss his potential nomination as Fed chairman was seen as a trigger for the rise in financial shares.

"He's definitely more hawkish on the spectrum," said Gennadiy Goldberg, interest rates strategist at TD Securities in New York.

Separately, a closely-watched measure of inflation fell to its lowest pace in August for nearly two years.

The personal consumption expenditures (PCE) price index, excluding food and energy, fell to an annual rate of 1.3%.

The core PCE figure is the Federal Reserve's preferred inflation measure, with the bank targeting a rate of 2%.