{"id":52429,"date":"2025-08-29T12:07:42","date_gmt":"2025-08-29T16:07:42","guid":{"rendered":"https:\/\/stockmarketwatch.com\/stock-market-news\/tech-sell-off-weighs-on-wall-street-midday-as-inflation-data-holds-steady\/52429\/"},"modified":"2025-08-29T12:07:42","modified_gmt":"2025-08-29T16:07:42","slug":"tech-sell-off-weighs-on-wall-street-midday-as-inflation-data-holds-steady","status":"publish","type":"post","link":"https:\/\/www2.stockmarketwatch.com\/stock-market-news\/tech-sell-off-weighs-on-wall-street-midday-as-inflation-data-holds-steady\/52429\/","title":{"rendered":"Tech Sell-Off Weighs on Wall Street Midday as Inflation Data Holds Steady"},"content":{"rendered":"

The U.S. stock market is experiencing a notable pullback in midday trading on Friday, August 29, 2025, as a technology sector sell-off weighs heavily on major indexes, pulling them back from their recent record highs. Despite the day's declines, the broader market remains on track to post its fourth consecutive month of gains for August, reflecting underlying resilience.<\/p>\n

Market Indexes and Midday Momentum<\/h2>\n

As of midday, the Dow Jones<\/a> Industrial Average<\/strong> (DJI<\/a>) is down approximately 0.4%, shedding around 125 points after closing at a new all-time high on Thursday. The S&P 500<\/a><\/strong> (SPX<\/a>) has fallen 0.7%, also retreating from its own record close yesterday. The tech-heavy Nasdaq Composite<\/strong> (IXIC<\/a>) is leading the declines, dropping 1.1% as technology stocks face significant selling pressure. Earlier in the day, futures for all three major indexes were pointing lower, signaling the cautious start to trading.<\/p>\n

This midday weakness follows a strong performance on Thursday, where the S&P 500 (SPX<\/a>) gained 0.3%, the Dow Jones Industrial Average (DJI<\/a>) rose 0.2%, and the Nasdaq Composite (IXIC<\/a>) advanced 0.5%, with both the S&P 500 and Dow hitting new all-time closing highs. The current market momentum suggests a period of profit-taking, particularly in the technology sector, even as investors digest fresh economic data. The cryptocurrency market is also seeing declines, with Bitcoin (BTCUSD<\/a>) trading around $108,300, down from an overnight high.<\/p>\n

Key Economic Data and Upcoming Events<\/h2>\n

A major focus for investors today was the release of the Personal Consumption Expenditures (PCE) report<\/strong>, the Federal Reserve's preferred measure of inflation. The data showed that prices rose 2.6% in the 12 months through July, which was unchanged from the previous month and met economists' expectations. However, the core PCE price index, which excludes volatile food and energy components, rose 2.9% annually, up from 2.8% in June and marking its highest level since February.<\/p>\n

This inflation data comes amidst strong expectations for a Federal Reserve policy move. Traders are currently pricing in an approximately 87% chance that the central bank will implement a 0.25 percentage point interest rate cut at its next meeting in September. Federal Reserve Chair Jerome Powell hinted at this possibility last week, and Federal Reserve Governor Christopher Waller has also publicly supported a quarter-point reduction next month, citing signs of a weakening labor market.<\/p>\n

Looking ahead, the economic calendar for next week includes several important releases that could influence market sentiment. Investors will be closely watching the August ISM manufacturing survey and services ISM reading for insights into economic activity. The US Fed Beige Book will provide an update on regional economic performance, while the job openings, hires, and quits survey (JOLTS) and ADP employment figures will precede Friday's non-farm payrolls report, which is expected to show moderate job growth.<\/p>\n

Major Corporate News and Stock Movements<\/h2>\n

Today's market action is heavily influenced by a flurry of corporate news and earnings reports:<\/p>\n