Top News Today: Tech Shares Lift Nasdaq as Broader Market Slips

MARKET WRAPS

STOCKS: U.S. stocks ended mostly lower, while a flurry of economic data eased concerns about imminent rate hikes and sent tech stocks higher.

TREASURYS: Yields rose, reversing a flimsy decline caused by relatively mild inflation data to end a volatile quarter.

FOREX: The dollar strengthened as investors adjusted interest-rate expectations.

COMMODITIES: Oil prices bounced from Tuesday's losses as tensions, supply risks and shipping disruptions in the Middle East persisted.

HEADLINES

Growth, Inflation Figures Show Signs of an Economic Pickup

New reports out Wednesday showed the U.S. economy grew more than

previously thought in the second quarter of 2026 and that inflation

remained firm in August. They added to evidence that the economy is

powering past challenges and fueling continued price increases.

The Commerce Department raised its reading for annualized gross

domestic product growth in the second quarter to 2.2%, well above the

1.5% that had previously been reported. The key consumer-spending and

investment categories were both stronger than previously thought.

Fed Mismanaged Building Renovation but Broke No Rules, Watchdog Finds

The Federal Reserve's independent watchdog said Wednesday it found no

evidence of administrative misconduct and no grounds to refer anyone for

criminal prosecution over the renovation of the central bank's

headquarters.

The report, by the Fed's office of the inspector general, removes the

last formal threat to former Fed chair Jerome Powell after the project

became a vehicle for the Trump administration's potential legal campaign

against him.

But the 120-page report was nonetheless sharply critical of how the

Fed managed the renovation of two historic buildings, finding that its

oversight framework was insufficient for a project of its size.

Construction costs have swelled to around $2.4 billion, up from an

estimate of $1.3 billion in 2020, according to the report.

FTC Opens Investigation of Anthropic and OpenAI

WASHINGTON-The Federal Trade Commission is investigating Anthropic and

OpenAI to determine whether they deceived consumers about the potential

harms of their artificial intelligence.

The probe was opened recently and the agency plans to send civil

subpoenas to the two companies in the coming weeks, a senior FTC official

said. The need for an investigation became apparent over the summer as

the agency heard concerns, some of them aired publicly, from AI

researchers who say the technology could wipe out humanity, the official

said.

Anthropic and OpenAI didn't immediately respond to requests for

comment.

Amazon Tries to Boost Nuclear Power in Maryland After Scrapping Data

Center Deal

Amazon.com walked away last month from plans to build a data-center

campus next to a nuclear plant in Maryland after facing community

opposition. Instead, the tech giant will help expand power generation at

the plant and explore the possibility of adding new reactors there.

Amazon has signed an agreement with Constellation Energy to help

upgrade the Calvert Cliffs Clean Energy Center, a nuclear site on the

western shore of Chesapeake Bay, by adding 190 megawatts of power that

will feed back into the regional grid. That's enough to power about

147,000 new homes. In return, Constellation will supply the tech company

with up to 690 megawatts of power long term from across its fleet.

Amazon and other big tech companies are racing to secure energy for

newly built data centers that will power AI and can guzzle as much

electricity as a midsize city. Nuclear energy is considered an attractive

option because it provides reliable, carbon-free electricity around the

clock.

Condé Nast CEO Roger Lynch Steps Down to Join Mattel

Condé Nast Chief Executive Roger Lynch is stepping down after more

than seven years to become CEO of toy company Mattel.

Lynch succeeds Chairman and CEO Ynon Kreiz, who will depart Mattel on

Oct. 2 to take a senior leadership position at another public company.

Kreiz is expected to be named to a top role at the media conglomerate

being created by Paramount's acquisition of Warner Bros. Discovery,

according to a person familiar with the matter.

Mike Perlis, the former CEO of Forbes and Ziff-Davis Publishing, as

well as Condé Nast's lead independent board member, will become Condé

Nast's interim CEO while the board searches for a new executive, the

company said Wednesday.

General Mills Taps COO to Helm Its Turnaround

Cereal giant General Mills is replacing its chief executive as it

works to turn around its business following a tough spell for America's

packaged food companies.

The company tapped its Chief Operating Officer Dana McNabb to succeed

Jeff Harmening after his nearly decadelong run as chief executive

officer.

General Mills on Wednesday said McNabb, who joined the Minneapolis

company in 1999 and was named chief operating officer earlier this year,

will become CEO on Jan. 1.

Lilly's Next-Gen Obesity Drug Helps People Lose Even More Weight in Study

A next-generation weight-loss drug from Eli Lilly, when combined with

Zepbound, helped people lose substantially more weight than Zepbound

alone, according to a new study.

The experimental injection, eloralintide, which mimics a hormone

called amylin that helps signal fullness after eating, was studied in

combination with a Zepbound shot in patients with Type 2 diabetes.

Patients on the highest dose of the combination lost an average of

23.3% of their body weight over roughly 11 months while those on Zepbound

alone lost an average of 14.8% of their weight. This data combines both

the results from patients who stayed in the trial as well as the

anticipated results of those that dropped out.

TALKING POINT Wall Street's Trading Desks Come Down From a Record High

Wall Street had a blockbuster second quarter. Big banks are cautioning that the sequel won't compare.

In the second quarter of the year, the biggest U.S. banks saw surging profits thanks to a boom in stock-market debuts, mergers and acquisitions and trading activity. Banks reaped the rewards of SpaceX's historic initial public offering, while market volatility kept trading floors bustling.

Executives are now guiding for a cooler third quarter for their trading desks, weighed down in part by their fixed-income trading businesses. Markets saw a turbulent summer: the AI trade stumbled as semiconductor stocks fell, hedge fund Situational Awareness suffered a bruising decline and leveraged investors unwound their riskiest positions. Stocks subsequently recovered, and the S&P 500 ended the quarter with a gain.

The end result for banks is likely to be of the best third quarters they've had, better than a year ago, but not as strong as that second-quarter bonanza.

"I think it's safe to say, 3Q is no 2Q," Morgan Stanley's Co-President Dan Simkowitz said at an industry conference hosted by Barclays in September.

Bank stocks have also pulled back in the past month, hurt by concerns about the Federal Reserve raising interest rates, rising AI uncertainty and the threat that the new technology poses to their own operations.

--Jasmine Li, The Wall Street Journal

Expected Major Events for Thursday 00:30/JPN: Sep Japan Manufacturing PMI

05:00/JPN: Sep Auto sales

06:00/UK: Sep Nationwide House Price Index

06:00/RUS: Sep Russian Manufacturing PMI

07:45/ITA: Sep Italy Manufacturing PMI

07:50/FRA: Sep France Manufacturing PMI

07:55/GER: Sep Germany Manufacturing PMI

08:00/ITA: Aug Unemployment

08:30/UK: Sep S&P Global UK Manufacturing PMI

09:30/US: Sep Challenger Job-Cut Report

12:30/US: 09/26 Unemployment Insurance Weekly Claims Report - Initial Claims

12:30/US: U.S. Weekly Export Sales

13:00/RUS: Weekly International Reserves

13:30/CAN: Sep Canada Manufacturing PMI

13:45/US: Sep US Manufacturing PMI

14:00/US: Sep ISM Report On Business Manufacturing PMI

14:00/US: Aug Construction Spending - Construction Put in Place

14:30/US: 09/25 EIA Weekly Natural Gas Storage Report

15:00/US: Sep Global Manufacturing PMI

20:00/US: Sep Domestic Auto Industry Sales

20:30/US: Foreign Central Bank Holdings

20:30/US: Federal Discount Window Borrowings

23:30/JPN: Sep CPI (Tokyo), CPI ex-Food (Tokyo)

23:30/JPN: Aug Labour Force Survey

23:50/JPN: Sep Monetary Base

(MORE TO FOLLOW) Dow Jones Newswires

September 30, 2026 16:37 ET (20:37 GMT)