Tech Stocks Decline Amid Earnings Reports and Inflation Data

U.S. stock index futures declined on Friday as investors reacted to earnings reports from major tech companies and awaited key inflation data. Dell Technologies reported a second-quarter adjusted gross margin of 18.7%, below the anticipated 19.6%, and provided a third-quarter profit forecast that fell short of analyst expectations. Despite raising its full-year revenue forecast to between $105 billion and $109 billion, Dell's shares dropped nearly 6% in premarket trading.

Marvell Technology also faced a downturn, with shares falling 11.3% premarket after the company projected third-quarter revenue of $2.06 billion, missing Wall Street's estimate of $2.11 billion. CEO Matthew Murphy indicated that data center revenue would remain flat in the third quarter, raising concerns about the momentum of the AI chip market.

In economic news, the U.S. Commerce Department reported that the Personal Consumption Expenditures (PCE) Price Index rose by 0.2% in July, aligning with economist forecasts. Year-over-year, PCE inflation held steady at 2.6%, while core PCE, excluding food and energy, increased to 2.9% from 2.8% in June. These figures are closely monitored by the Federal Reserve as it considers future interest rate decisions.

The S&P 500 and Dow had closed at record highs the previous day, with the Nasdaq heading toward a fourth consecutive month of gains. However, the latest earnings reports and inflation data have introduced new variables for investors to consider as they assess the market's trajectory.