Wall Street faces inflation and jobs test after confidence slump

Wall Street faces a critical test Wednesday as US inflation and private employment data are released, following a 12-year low in consumer confidence and 19-year highs in Treasury yields. Investors are bracing for volatility across stocks, bonds, and the dollar. The Conference Board's consumer confidence index plunged 6.7 points to 81.9 in September, the lowest since 2014, while job openings fell by 256,000. The upcoming PCE inflation reading, ADP employment report, and Q2 GDP revision will shape expectations for Federal Reserve rate hikes, with October hike probabilities exceeding 60%. European markets closed mixed amid sovereign yield pressures and EU budget disputes, with Germany leading six nations threatening to veto the bloc's seven-year spending plan. Oil remains volatile after Iran tensions, with WTI settling at $88.89 per barrel, while the 10-year Treasury yield hit 5.241%.