NEW YORK: Wall Street’s main stock indexes fell on Friday, pressured by technology stocks such as Dell and Nvidia, while investors parsed inflation data showing tariffs have started feeding into prices.
Dell fell 8.4 percent and led declines on the S&P 500 after the personal computer maker forecast quarterly profit below estimates. The broader technology sector shed 1.7 percent, cooling down after rallying through the year.
Nvidia lost 3.5 percent and an index tracking chipmakers slid 2.8 percent, a day after the AI chip leader’s dour China market expectations disappointed investors accustomed to blockbuster forecasts from the company.
The spotlight was on a Commerce Department report that showed the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, rose 2.6 percent in July as expected on an annual basis - above the central bank’s 2 percent target.
A measure of underlying prices suggested US tariffs on imports were starting to reflect in the prices of some goods.
The US tariff exemption for package imports valued under USD800 also ended on Friday, raising costs for businesses and, in turn, consumers.
The in-line numbers did little to change bets that the Fed will lower interest rates by 25 basis points in September, especially following Chair Jerome Powell’s dovish comments at Jackson Hole where he acknowledged labor market weakness.
The nonfarm payrolls report is expected next Friday.
At 12:00 p.m. ET, the Dow Jones Industrial Average fell 195.30 points, or 0.43 percent, to 45,441.60, the S&P 500 lost 49.14 points, or 0.76 percent, to 6,452.72 and the Nasdaq Composite lost 271.42 points, or 1.25 percent, to 21,433.74.
Fed Governor Christopher Waller, a candidate for the central bank’s top job, said on Thursday he wants to start cutting rates next month, in line with President Donald Trump’s calls to lower borrowing costs.
Rate-cut bets have put the benchmark S&P 500 and the blue-chip Dow on track for their fourth straight month of gains, while the tech-heavy Nasdaq was poised to log its fifth consecutive monthly rise. The S&P 500 posted 21 new 52-week highs and no new lows while the Nasdaq Composite recorded 58 new highs and 55 new lows.
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