{"id":52424,"date":"2025-08-29T10:29:48","date_gmt":"2025-08-29T14:29:48","guid":{"rendered":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wall-street-retreats-from-record-highs-amid-inflation-concerns-and-mixed-tech-earnings\/52424\/"},"modified":"2025-08-29T10:29:48","modified_gmt":"2025-08-29T14:29:48","slug":"wall-street-retreats-from-record-highs-amid-inflation-concerns-and-mixed-tech-earnings","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/wall-street-retreats-from-record-highs-amid-inflation-concerns-and-mixed-tech-earnings\/52424\/","title":{"rendered":"Wall Street Retreats from Record Highs Amid Inflation Concerns and Mixed Tech Earnings"},"content":{"rendered":"

The U.S. stock market opened lower on Friday, August 29, 2025, pulling back from the record highs achieved in the previous session as investors digested fresh inflation data and a mixed bag of corporate earnings. The early trading saw major indexes dip, with technology stocks particularly feeling the pressure, even as some individual companies posted significant gains. This marks a cautious end to August, a month that has otherwise seen the market on a generally upward trajectory.<\/p>\n

Major Market Indexes Open Lower<\/h2>\n

In early trading, the benchmark S&P 500<\/a> (SPX<\/a>) fell 0.5%, retreating after climbing to a record high just yesterday. The technology-heavy Nasdaq Composite (IXIC<\/a>) experienced a more significant decline, dropping 0.9% at the open. The Dow Jones<\/a> Industrial Average (DJI<\/a>) also came off its own record high, shedding 0.3% in early trading. These movements suggest a period of profit-taking and re-evaluation following a robust run, with all three major indexes still on track to post monthly gains for August.<\/p>\n

The slight downturn comes as traders assess new economic data and corporate reports. Despite the early losses, the overall sentiment for August remains positive, with the S&P 500 (SPX<\/a>) poised to end the month up approximately 2%, marking its fourth consecutive month of gains. The Dow Jones Industrial Average (DJI<\/a>) and Nasdaq Composite (IXIC<\/a>) are also on pace for their fourth and fifth straight monthly gains, respectively.<\/p>\n

Key Economic Data and Federal Reserve Outlook<\/h2>\n

A closely watched measure of inflation, the Personal Consumption Expenditures (PCE) index, was released today, showing that prices rose 2.6% in July compared with a year ago, which was in line with economists' expectations. However, the core PCE index, which excludes the volatile food and energy categories, increased by 2.9% year-over-year, up from 2.8% in June and marking its highest level since February. This uptick in core inflation could influence the Federal Reserve's monetary policy decisions.<\/p>\n

Federal Reserve Governor Christopher Waller indicated yesterday that he favors a 25-basis-point interest rate cut next month and anticipates additional cuts over the next three to six months to move monetary policy to a more neutral stance. Market traders are currently pricing in an approximately 87% chance that the central bank will indeed cut its benchmark interest rate by a quarter of a percentage point in September. Other economic data expected today includes the August Chicago PMI and the final August Michigan Consumer Survey.<\/p>\n

Major Stock News and Company Highlights<\/h2>\n

The technology sector, a significant driver of recent market gains, saw notable movements. Chipmaker Nvidia (NVDA<\/a>) fell nearly 3% in early trading, adding to yesterday's declines. While the company reported quarterly earnings and revenue that beat Wall Street forecasts, the growth in sales of its artificial intelligence (AI) chipsets was slower than analysts had anticipated, leading to some investor disappointment. Other tech giants also experienced declines, with Broadcom (AVGO<\/a>) dropping 2.7% and Oracle (ORCL<\/a>) down 3.6%. Microsoft (MSFT<\/a>), Apple (AAPL<\/a>), Amazon (AMZN<\/a>), and Meta Platforms (META<\/a>) were also trading lower.<\/p>\n

Conversely, some companies defied the broader market's downward trend. Alphabet (GOOGL<\/a>), the parent company of Google, saw its shares tick higher. Notably, YouTube TV, an Alphabet subsidiary, announced a distribution renewal agreement with Fox, ensuring continued carriage of the network's programming ahead of the football season. Electric vehicle maker Tesla (TSLA<\/a>) also saw a slight uptick in its stock price.<\/p>\n

In corporate earnings news, several companies made headlines:<\/p>\n