by Lewis Krauskopf, Shashwat Chauhan and Shristi Achar A

(Reuters) – The New York Stock Exchange ended mixed on Friday, as investors weighed the impact that the publication of inflation data could have on the rate policy of the US Federal Reserve (Fed) .

The Dow Jones index fell -0.47%, or 158.84 points, to 33,507.5 points.

The broader S&P-500 lost 11.65 points, or -0.27%, to 4,288.05 points.

The Nasdaq Composite advanced 18.05 points (0.14%) to 13,219.32 points.

Core PCE inflation, closely monitored by the Fed, decelerated more than expected, to 0.1% in August over one month, after an increase of 0.2% in July. Over one year, its progression was reduced to 3.9%, compared to 4.3% in July.

The report painted “a better-than-expected but still elevated inflation picture,” said Eric Freedman, chief investment officer at US Bank Asset Management.

“(Moreover) we are at the end of the quarter, and it comes with all kinds of activity in the stock and bond markets,” he added.

From a sector perspective, energy and finance fell significantly.

“Energy and finance were steadily rising so we are seeing a rebalancing effect today,” explained Eric Freedman.

The release of the PCE consumer price index comes in the wake of the Fed’s meeting on Wednesday, which suggested that interest rates would remain high for longer than expected.

“Investors are finally waking up to the Fed’s comments, that (rates) are going to be higher for longer, and that there is an alternative to stocks,” said Paul Nolte, strategist at Murphy & Sylvest Wealth Management.

Investors are also monitoring the situation in Washington, where budget discussions are continuing in Congress to avoid a partial shutdown of federal administrations starting Sunday.

In terms of values, Nike jumped after reporting a profit higher than market expectations for the first quarter of its fiscal year.

(Reporting Lewis Krauskopf in New York, Shashwat Chauhan and Shristi Achar A in Bangalore; Camille Raynaud)

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