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Technology, Consumer Discretionary Push US Equity Indexes Lower as Investors Weigh Inflation Data

1:41 PM ET 08/29/2025 - MT Newswires

The Nasdaq Composite dropped 1.2% to 21,442.2, with the S&P 500 down 0.7% to 6,454.6, and the Dow Jones Industrial Average 0.3% lower at 45,481.1. The industrials sector was among the steepest decliners, while energy led the gainers.

On the inflation front, the personal consumption expenditures price index increased 0.2% in July, as expected, following a 0.3% rise in June. Year-over-year, headline inflation rose 2.6% for the second consecutive month, matching the gain back in February, according to a Stifel research note.

Excluding food and energy, the core PCE rose 0.3% in July, as expected, following a similar increase in June. Over the past 12 months, core inflation increased 2.9% in July -- the largest annual gain since February, as per the Stifel note -- compared with 2.8% in June.

The super-core PCE measure -- core services excluding shelter -- rose 0.4% in July, the largest monthly gain in five months, according to the Stifel note. On an annual basis, the super-core PCE rose 3.3% in June, marking the largest jump since March.

Meanwhile, the University of Michigan consumer sentiment index was revised lower to 58.2 for August from its preliminary estimate of 58.6, versus expectations for no revision in a survey compiled by Bloomberg. The August print lagged the final reading of 61.7 in July.

Respondents in the Michigan survey expected a 4.8% inflation rate over the next year and 3.5% annual inflation over the next five years, up from 4.5% and 3.4% respectively, in July.

Treasury yields were mixed after midday, with the 10-year yield up 1.8 basis points to 4.23% while the two-year rate slipped 1.2 basis points to 3.62%.

The odds of a 25-basis-point cut in interest rates in September stood at 87% by Friday afternoon, in line with a day ago, according to the CME FedWatch Tool. The probability of the Federal Reserve leaving rates unchanged next month remained unchanged at 13%.

Gold futures climbed 1.2% to $3,514.4, and silver futures surged 2.6% to $40.21.

In company news, Autodesk (ADSK) shares jumped 8%, the top performer in the S&P 500 and the Nasdaq, after the company posted higher fiscal Q2 non-GAAP net income and revenue, and raised its fiscal 2026 outlook.

Dell Technologies' (DELL) shares slumped 8.4%, the steepest decline on the S&P 500, after the company reported stronger-than-expected fiscal Q2 results and issued Q3 adjusted earnings midpoint guidance below analysts' expectations.

Marvell Technology's (MRVL) shares sank 17%, the worst performer on the Nasdaq, after the semiconductor company reported higher fiscal Q2 results and issued Q3 revenue outlook below market estimates at the midpoint.

West Texas Intermediate crude oil futures retreated 1% to $63.96 a barrel.