U.S. Stocks Decline Amid Tech Weakness and Inflation Data

On Friday, August 29, 2025, U.S. stock indexes declined after previously reaching record highs. The S&P 500 fell 0.6% to 6,460.26, closing August with a 1.9% gain—its fourth consecutive monthly increase. The Dow Jones Industrial Average decreased by 0.2% to 45,544.88, while the Nasdaq Composite dropped 1.2% to 21,455.55.

Technology stocks led the decline, with Marvell Technology shares falling 18.9% following disappointing data center revenue and a downgrade from Bank of America. Nvidia also declined 3.3%, marking its largest weekly drop since May.

The Commerce Department reported that the Personal Consumption Expenditures (PCE) Price Index rose 0.2% in July, aligning with economists' expectations. On an annual basis, the index increased by 2.6%. The core PCE, excluding food and energy costs, climbed 0.3% for the month and 2.9% from a year earlier.

Federal Reserve Governor Christopher Waller indicated support for initiating interest rate cuts starting in September, citing signs of a weakening labor market and the risk of rapid deterioration. He anticipates further cuts over the next three to six months, aiming to bring rates closer to a neutral stance of about 3%, down from the current 4.25%-4.50% range.

Investors are closely monitoring these developments as they assess the potential impact on the economy and financial markets.