FX.co ★ S&P 500 Slides After Record Highs Amid Inflation Concerns

In afternoon trading, U.S. stocks experienced a downturn as investors capitalized on gains from a strong week in which the S&P 500 had recently hit record highs. This came amid enduring signs of inflationary pressures within the U.S. economy. The S&P 500 saw a decrease of 0.8%, while the Nasdaq 100 fell by 1.4%, and the Dow Jones Industrial Average declined by 0.4%. Technology stocks spearheaded the decline, with Nvidia experiencing a 3.8% drop due to conservative projections concerning sales in China affecting market sentiment. Dell also suffered an 8.6% decrease following unsatisfactory forecasts. Attention remained on inflation, highlighted by the Federal Reserve's preferred measure, the core Personal Consumption Expenditures (PCE) index, which increased by 2.9% year-over-year in July, marking the highest rise since February and surpassing the central bank's target. Further pressure stemmed from renewed tariff concerns, as Caterpillar projected up to $1.8 billion in related costs for the year. Despite the market pullback on Friday, all three major indices were still poised to conclude August with strong monthly gains, thus continuing their longest winning streak in more than a year.