Inflation Report Sparks Stock Market Concerns

Major U.S. stock benchmarks remained down for the month as investors weighed the latest inflation report, with real average hourly earnings declining 0.5% in August, impacting consumer spending power. First Trust economists warned that the inflation problem is far from over and that a recession is likely on the way. The Bureau of Labor Statistics reported a 0.6% rise in U.S. inflation in August, with the year-over-year rate accelerating to 3.7%. Core inflation, excluding energy and food prices, increased 0.3% last month. The Fed's battle against inflation continues, with rental inflation and the 'Super Core' category showing persistent increases. Stock-market investors await U.S. retail sales data on Thursday to gauge the health of the consumer.