U.S. Stocks Decline as Tech Sector Weakens Amid Inflation Concerns

U.S. stock markets declined on Friday, with major indexes retreating from recent record highs. The S&P 500 fell 0.7%, the Dow Jones Industrial Average decreased by 0.3%, and the Nasdaq Composite dropped 1.2%, primarily due to weakness in the technology sector.

The Commerce Department reported a 2.6% annual increase in consumer prices for July, consistent with June's figures. Core inflation, which excludes food and energy prices, rose to 2.9%, the highest level since February.

Federal Reserve Chair Jerome Powell indicated that economic conditions might warrant an interest rate cut when the policy committee meets next month. Traders currently forecast an 87% probability of a 0.25 percentage point rate cut.

Technology stocks experienced significant declines. Nvidia shares fell 3.4%, Broadcom dropped 4.3%, and Marvell Technology plunged 18.3% following weak guidance. Dell Technologies tumbled 9.3%, while Oracle declined 6.3%.

In contrast, some companies reported gains. Autodesk climbed 8% due to strong earnings, and Affirm Holdings surged 11%.

Bitcoin traded at $108,800, down from an overnight high of $112,600, marking its lowest levels since early July.

The U.S. dollar index remained relatively unchanged at 97.75. The yield on the 10-year Treasury note stood at 4.22%, up from 4.21% at the previous close.

West Texas Intermediate crude oil futures fell 0.9% to $64 per barrel, while gold futures rose 1.2% to $3,515 an ounce, nearing a record high.