FX.co ★ US Stocks Slip, S&P 500 Posts 4th Winning Month

U.S. stocks closed lower on Friday as the S&P 500 pulled back from its record highs, amidst continuing indications of enduring inflation in the economy. The S&P 500 experienced a decline of 0.6%, the Nasdaq decreased by 1.2%, and the Dow fell by 92 points, equivalent to 0.2%. In July, the Core Personal Consumption Expenditures (PCE) index—favored by the Federal Reserve as a measure of inflation—advanced by 2.9% year-over-year. This rise was in line with expectations but noted as the most rapid increase since February. Shares related to technology and artificial intelligence weighed on the market, with Nvidia dropping 3.4% and Dell falling 8.9%, affected by competition and escalating costs associated with AI products. Conversely, Alibaba saw an impressive surge of 12.9% owing to robust cloud computing results, while Caterpillar and Marvell declined by 3.6% and 18.6% respectively, due to concerns regarding tariffs and revenue. Despite Friday's setbacks, the S&P 500 and Dow achieved their fourth consecutive monthly gains, rising by 2% and 3% respectively, with the Nasdaq marking a fifth straight monthly increase, gaining 1%. It is noteworthy that the markets will remain closed on Monday in observance of Labor Day.