Major Indexes Pull Back at the Market Close
The major U.S. stock indexes retreated on Friday, August 29, 2025, as investors took profits ahead of the Labor Day weekend following a week that saw the S&P 500 reach new record highs. Despite the day’s losses, the S&P 500 ended August with its fourth consecutive monthly gain, rising nearly 2% for the month. The index finished at 6,460.26, down 0.64% at today’s market close.
The Dow Jones Industrial Average lost 92.02 points, or 0.20%, to settle at 45,544.88, while the tech-heavy Nasdaq Composite declined 1.15% to close at 21,455.55.
Inflation Concerns Weigh on Markets
Friday’s market decline came after the release of the Personal Consumption Expenditures (PCE) Price Index, a key inflation measure closely watched by the Federal Reserve. Core PCE, which excludes food and energy costs, increased 2.9% year-over-year in July, matching expectations but accelerating from the previous month to reach its highest level since February.
“The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation,” said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. “Today’s in-line PCE Price Index will keep the focus on the jobs market. For now, the odds still favor a September cut.”
Tech Sector Leads Decline
Nvidia (NVDA) was among Friday’s key laggards, with shares falling more than 3% to close at $174.18, despite reporting strong 56% revenue growth in its recent quarterly report.
Other major tech stocks also retreated at today’s market close, with Microsoft (MSFT) falling 0.58% to $506.69, Apple (AAPL) dipping 0.18% to $232.14, Amazon (AMZN) declining 1.12% to $229.00, and Meta (META) dropping 1.65% to $738.70.
Companies Reporting Earnings After Monday’s Close
With markets closed on Monday for Labor Day, investors are looking ahead to several notable earnings reports scheduled for after Tuesday’s close. Zscaler (ZS) is expected to report earnings of $0.80 per share when it releases its quarterly results.
Later in the week, Salesforce (CRM) will report its fiscal 2026 second-quarter results after Wednesday’s close, with analysts expecting earnings of $2.78 per share, an 8.6% increase year-over-year, on revenue of $10.1 billion.
Economic Data to Watch
Looking ahead to next week, markets will be closed on Monday, September 1, for Labor Day. When trading resumes on Tuesday, investors will focus on several key economic reports, including the ISM Manufacturing PMI and Manufacturing Prices data.
Wednesday will bring the Final Services PMI for both Europe and the UK, along with the closely watched JOLTS Job Openings report in the U.S., which could provide further insights into labor market conditions ahead of the Federal Reserve’s next policy meeting.
Market Outlook
As markets enter September, historically the weakest month for stocks, investors remain cautious. According to The Stock Trader’s Almanac, September has been the biggest losing month for the S&P 500, Dow, and Nasdaq since 1950, with the S&P 500 averaging a 0.7% decline during the month over the past decade.
Additionally, tariff concerns have resurfaced following some troubling corporate commentary. Caterpillar warned it could see a $1.5 billion to $1.8 billion hit this year from President Donald Trump’s tariffs, sending its shares more than 3% lower on Friday. Gap also recently indicated that tariffs will weigh on profits.
Despite these concerns, the U.S. stock market remains resilient, with the S&P 500 up 14.37% compared to the same time last year, while the Nasdaq Composite has surged 19.62% over the same period.
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.