U.S. equities opened lower on Friday, August 29, 2025, pulling back from record highs set just yesterday, as investors digested fresh inflation data and a mixed bag of corporate earnings. The slight dip in early trading comes after a week of gains, with all major indexes still poised to close August with their fourth consecutive monthly advance.
Major Market Indexes See Early Retreat
As the market opened, the major U.S. stock indexes registered declines. The S&P 500 (SPX) was down approximately 0.3% to 0.5%, following its climb past the 6,500 mark and a record close on Thursday. The tech-heavy Nasdaq Composite (IXIC) experienced a more pronounced dip, falling between 0.6% and 0.9% in early trading, after finishing just shy of a new high yesterday. Meanwhile, the Dow Jones Industrial Average (DJIA) slipped around 0.2% to 0.3% from its own record close on Thursday. This early retreat suggests a cautious mood among investors as they assess the latest economic indicators and company-specific news.
Key Economic Data and Federal Reserve Outlook
A significant market driver today was the release of the Personal Consumption Expenditures (PCE) report, the Federal Reserve's preferred measure of inflation. The report indicated that prices rose 2.6% in the 12 months through July, remaining unchanged from the previous month and aligning with economists' expectations. The core PCE, which excludes volatile food and energy prices, increased 0.3% month-over-month and 2.9% year-over-year, also meeting consensus estimates.
This in-line inflation data is crucial as markets continue to anticipate the Federal Reserve's next move. Futures markets are currently pricing in an 85% to 87% chance that the central bank will implement a 25-basis-point interest rate cut at its upcoming September policy meeting. Federal Reserve Governor Christopher Waller notably expressed support for a rate cut next month, aiming to prevent a deterioration of the labor market. However, some analysts suggest that a rate cut at this juncture might be a "risky step" given the persistent inflation and robust personal spending data, implying that holding rates steady could be a more prudent policy choice.
Beyond the PCE report, other economic data released today included the August Chicago PMI, which is being closely watched for regional manufacturing activity. Additionally, the U.S. international goods trade deficit expanded more than expected, and both wholesale and retail inventories saw a modest 0.2% month-over-month increase in July. Political developments surrounding the Federal Reserve are also in focus, with reports of an emergency hearing concerning Governor Lisa Cook's position and ongoing political pressure on the central bank's independence.
Major Corporate News and Stock Movements
Today's market also saw significant movements driven by individual company news and earnings reports.
Nvidia (NVDA) shares experienced a decline of nearly 3% in early trading, extending yesterday's losses. This comes after the AI chipmaker's latest earnings report, despite beating revenue and earnings estimates, "failed to exceed Wall Street's lofty expectations," leading to some profit-taking in the high-flying stock.
Conversely, several companies saw substantial gains following positive earnings. Affirm (AFRM) surged an impressive 21% in early trading, building on its year-to-date performance. The buy-now-pay-later provider reported a swing to a quarterly profit with better-than-estimated results and robust 33% revenue growth. Engineering software maker Autodesk (ADSK) climbed 11%, buoyed by strong second-quarter results and an optimistic raised outlook. In the retail sector, Burlington Stores (BURL) jumped 5.3% and Ollie's Bargain Outlet Holdings (OLLI) rose 0.6% after both companies surpassed their second-quarter fiscal 2025 earnings estimates. Dollar General (DG) also gained 0.5% after beating its Q2 earnings per share forecast.
However, not all earnings news was positive. Dell Technologies (DELL) plummeted 9.7% to 10% after the company, despite exceeding second-quarter revenue expectations, highlighted margin pressures and weakness in its PC revenue, alongside a soft profit outlook for the current quarter. Similarly, AI chipmaker Marvell Technology (MRVL) plunged 17% in early trade following disappointing quarterly results and guidance, raising concerns among investors about its future in the competitive artificial intelligence spending landscape. Malibu Boats (MBUU) also saw a significant drop of 17% after missing its fourth-quarter fiscal 2025 earnings estimates.
Other notable tech giants experienced declines, with rival chipmaker Broadcom (AVGO) down 2%, and Microsoft (MSFT), Apple (AAPL), Amazon (AMZN), and Meta Platforms (META) all losing ground. Oracle (ORCL) was also 3.6% lower. In contrast, Alphabet (GOOGL) and Tesla (TSLA) ticked higher. In other news, YouTube TV, a subsidiary of Alphabet (GOOGL), announced it has reached a distribution renewal agreement with Fox, ensuring continued carriage of the network's programming.
As the trading day progresses, market participants will continue to monitor these developments, particularly the Federal Reserve's stance on monetary policy and the ongoing impact of inflation on corporate performance and consumer spending.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.