The S&P 500 index closed lower on Wednesday, bringing to an end a month during which investors have been concerned about inflation and high interest rates.

The S&P 500 index closed down 0.3% in New York, giving back some of the 0.7% gain it had reached at one point during the session.

The index fell by 0.5% in September, recording its worst monthly performance since June.

The Nasdaq 100 index, which is dominated by technology stocks, rose 0.2% on Wednesday.

U.S. stocks rose for most of the trading session on Wednesday, as inflation indicators favored by the Federal Reserve rose less than expected, reinforcing market expectations that the Fed will not raise interest rates in October.

Data also shows that U.S. consumer spending in August recorded the fastest growth rate in over a year, providing momentum for economic growth amid ongoing inflation.

Fifth Third Wealth Advisors Chief Investment Officer Chris Osmond stated that the data on Wednesday presented a "Cinderella-like combination."

Economic growth in the second quarter was stronger than expected, consumer spending was more robust, and the labor market rebounded significantly in September, while the inflation indicators favored by the Federal Reserve were well below expectations. This provides broad support for risk assets overall and significantly reduces the likelihood of a rate hike in October.

Interest rate swaps show that traders expect the probability of Federal Reserve officials raising interest rates at a meeting about a month from now to be around 36%, whereas the estimated probability before the release of the PCE data was about 50-50.

The S&P 500 Industrial Index fell 1.3% on Wednesday, marking a cumulative decline of over 10% from its record high reached in mid-August, and entered a correction zone.

Micron Technology announced its financial results after the market closed. The largest memory chip manufacturer in the United States provided sales forecasts for this quarter that exceeded market estimates, thanks to the AI infrastructure construction, which pushed chip demand to an unprecedented level.

As of the close, the S&P 500 index fell 0.3% to 7,651.54 points; the Dow Jones Industrial Average fell 0.9% to 50,906.05 points; the Nasdaq Composite Index rose 0.2% to 26,861.06 points; the Nasdaq 100 Index rose 0.2% to 30,408.5 points; the Russell 2000 Index fell 0.4% to 2,796.864 points.