US stock markets closed lower on Friday, following some profit-taking on technology bigwigs. Market participants were also weighing in sticky inflation and the probability of an interest rate cut by the Fed in September. All three major stock indexes ended in negative territory.
For the week as a whole, these indexes also finished in the red. However, for August, the three major stock indexes closed in positive territory. Wall Street remained closed on Monday due to Labor Day.
How did the benchmarks perform?
The Dow Jones Industrial Average (DJI) fell 0.2% to close at 45,544.88. Notably, 16 components of the 30-stock index ended in negative territory and 14 finished in positive territory. At the intraday low, the blue-chip index was down nearly 260 points.
The tech-heavy Nasdaq Composite finished at 21,455.55, sliding 1.2% or 249.61 points due to the weak performance of technology stocks. At the intraday low, the tech-laden index was down nearly 307 points.
The major loser of the index was the AI-powered fabless semiconductor giant Marvell Technology Inc. (MRVL). The company’s second-quarter fiscal 2026 revenues fell short of the Zacks Consensus Estimate. As a result, the stock price plunged 18.6%. Marvell Technology currently carries a Zacks Rank #3 (Hold).
The S&P 500 tumbled 0.6% to finish at 6,460.26. Out of the 11 broad sectors of the broad-market index, five ended in negative territory, and six in positive territory. The Technology Select Sector SPDR (XLK) and the Consumer Discretionary Select Sector SPDR (XLY) plummeted 1.5% and 1%, respectively.
The fear gauge, the CBOE Volatility Index (VIX) was up 6.4% to 15.36. A total of 14.8 billion shares were traded on Friday, lower than the last 20-session average of 16.4 billion. The S&P 500 registered 21 new highs and no new lows, while the Nasdaq posted 76 new highs and 67 new lows.
Sticky inflation data
The Department of Commerce reported that the personal consumption expenditure (PCE) price index — popularly known as PCE inflation — rose 0.3% in July, higher than the Zacks Consensus Estimate of 0.2% and June’s figure of 0.1%. Year over year, PCE inflation rose 2.6% in July.
Core PCE inflation (excluding volatile energy and food items) — Fed’s most favorite inflation gauge —rose 0.3% in July, in line with the Zacks Consensus Estimate and on par with June’s figure. Year over year, core PCE inflation rose 2.9% in July, in line with the consensus estimate but 0.1% higher than June’s figure. July’s annual reading was the highest since February.
Other economic data
The Department of Commerce reported that personal income increased 0.4% in July compared with 0.3% in June. The Zacks Consensus Estimate was 0.5%. Personal spending rose 0.5% in July, in line with the Zacks Consensus Estimate. The metric for June was revised upward to 0.4% from 0.3% reported earlier. Personal savings rate came in at 4.4% in July. The metric for June was revised marginally downward to 4.4% from 4.5% reported earlier.
The University of Michigan reported that the final reading for the consumer sentiment index for August came in at 58.2, lower-than the Zacks Consensus Estimate of 58.6. The preliminary reading of August was also 58.6. The final reading for July was 61.7.
The sub-index for current economic conditions came in at 61.7 in August compared with 68 in July. The sub-index for consumer expectations came in at 55.9 in August compared with 57.7 in July. Short-term (1 year) inflation expectation moved up to 4.8% in August from 4.5% in July. Long-term (5 year) inflation expectation ticked up to 3.5% in August from 3.4% in July.
Chicago PMI (purchasing managers’ index) came in at 41.5, well below the Zacks Consensus Estimate of 47.3 and June’s figure of 47.1.
Weekly roundup
Last week was tepid for U.S. stocks. The three major stock indexes — the Dow, the S&P 500 and the Nasdaq Composite — fell 0.2%, 0.1% and 0.02%, respectively. Investors booked profits after a two-month long impressive rally.
Monthly roundup
Wall Street witnessed solid rally in August. The Dow, the S&P 500 and the Nasdaq Composite — advanced 3.2%, 1.9% and 1.6%, respectively. No impact of tariff-related concerns on the U.S. economy, weak labor market data and Fed Chairman’s indication of a possible rate cut in September bolstered investors’ sentiment.
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Source: https://www.fxstreet.com/news/stock-market-news-for-sep-2-2025-202509020937
