What you need to know today

S&P 500 in correction
The benchmark S&P 500 index slipped into correction territory on Friday on fears of a recession, closing 10.3% lower from this year’s peak on July 31. The Dow Jones Industrial Average closed 1.12% lower, while the Nasdaq Composite held 0.38% higher. European stocks also ended lower, with the benchmark Stoxx 600 closing down 0.8%.
Hey, Big Spender
Inflation in September rose but consumer spending came in even stronger than economists expected, numbers from the Commerce Department showed on Friday. The core personal consumption expenditures price index, the Fed’s key inflation measure, was 0.3% higher for the month, which was in line with the Dow Jones estimate. Even though prices picked up, personal spending continued, rising 0.7%, which was better than the 0.5% forecast.
A potential pause?
The Federal Reserve is widely seen leaving interest rates unchanged at the end of its two-day policy meeting this week, even as its preferred inflation indicator remains well above its 2% target. Earlier this month, Fed Chair Jerome Powell said “inflation is still too high,” raising expectations that another rate hike may not be entirely out of the picture.
The S&P 500 correction is good news
The stock market tumbled into correction territory this week, sparking fears of more turmoil is ahead. But for disciples of Warren Buffett, a 10% drawdown for the the S&P 500 shouldn’t matter. $Nasdaq Composite Index (.IXIC.US)$ $SPDR S&P 500 ETF (SPY.US)$ $S&P 500 Index (.SPX.US)$ $Dow Jones Industrial Average (.DJI.US)$ $Invesco QQQ Trust (QQQ.US)$