Stocks hit by tech selloff after economic reports: Markets Wrap

Bloomberg Rita Nazareth Wall Street traders drove stocks lower amid a selloff in tech shares that have powered the surge from April s meltdown That s despite economic facts that did little to alter bets on Federal Reserve rate cuts with bonds and the dollar seeing small moves Equities fell after a rally that drove the S P to all-time highs The domain is bracing for what has historically been the weakest month for US shares as institutional investors rebalance retail traders slow their buying volatility picks up and corporate buying goes dark Subscribe to the Stock Movers Podcast on Apple Spotify and other Podcast Platforms While macro events are generally more determinant for the area s direction seasonal factors can exacerbate moves triggered by the likes of economic information or monetary agenda US consumer spending rose in July by the the greater part in four months indicating resilient demand in the face of stubborn inflation Related Articles Alef Aeronautics to begin flying car tests at Half Moon Bay Hollister airports Nvidia faces trial over engineer s stolen code oops moment Texas tech firm rents chunk of Sunnyvale office space as sector rebounds After Trump announcement Intel among several companies to make Bay Area job cuts million South Bay tech campus purchase points to weaker values Personal spending has been revised upward and remains strong enough to endorsement the US rise narrative reported Gina Bolvin President of Bolvin Wealth Management Group I still expect seasonal weakness to kick in and would look to be a buyer on dips Despite Friday s losses S P is on track to wrap its fourth straight month of gains the longest run since September The Nasdaq fell with Nvidia Corp leading declines in megacaps Dell Technologies Inc sank after reporting tighter profit margins on servers The yield on -year Treasuries advanced three basis points to The dollar wavered The so-called core personal consumption expenditures price index which excludes food and potential items and is favored by the Federal Reserve rose from June From the prior year the gauge picked up to the majority since February The good news is in-line expectations likely keep the status quo intact which leaves a Fed rate cut in play for September announced Bret Kenwell at eToro The bad news is inflation is continuing to inch higher which isn t really the surroundings the Fed likely wants to cut in For now though Kenwell notes that an in-line PCE statement should lend more confidence to a September rate cut Short of a robust jobs reading it s hard to see any input derailing the Fed s plan to cut rates in September he stated Fed Governor Christopher Waller late Thursday called for lower rates saying he would endorsement a quarter-percentage point reduction in September and anticipates additional cuts over the next three to six months While he does not at this moment see the need for an outsized cut that could change if the jobs document due next week points to a substantially weakening business sector and inflation remains well contained The Fed has kept rates unchanged so far in largely due to concerns that tariffs could stoke inflationary pressures But lackluster employment figures distributed after the July meeting have prompted greater concern and Fed Chair Jerome Powell commented last week a cut could be warranted citing a shifting balance of risks Wall Street s Reaction to PCE David Russell at TradeStation At present s numbers keep us on track for a rate cut in September but there s essential uncertainty after that given the strong consumer and core inflation well above the Fed s target While there might be several impact from tariffs fears about spiraling inflation aren t coming true yet Strong personal income and spending also suggest consumers remain healthy even if they re anxious about the future Ellen Zentner at Morgan Stanley Wealth Management 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 vulnerability than rising inflation Currently s in-line PCE Price Index will keep the focus on the jobs region For now the odds still favor a September cut Scott Helfstein at Global X The Fed s preferred inflation reading was inline in contemporary times and that likely paves the way for a September rate cut The primary drivers of inflation are housing utilities and tariffs Higher rates do nothing to control costs in those areas Jennifer Timmerman at Wells Fargo Resources Institute Solid gains in July personal income and spending added to latest signs of resilient economic rise early in the third quarter while PCE inflation evidence established lingering inflation pressures Taken together we believe the content raises doubts about the need for more aggressive Fed rate cuts in the coming months Still barring a blowout nonfarm payrolls print next Friday we view a September rate cut as likely given the growing chorus of dovish Fed speak Next up the highly visible jobs review for August perhaps an even more vital test of the Fed s shift toward a more dovish program stance With stocks hanging at record highs we think the field is vulnerable to event jeopardy as the calendar turns to September So we favor trimming equity exposure and rebalancing portfolios to reflect more neutral allocations across asset classes ahead of a typically seasonally weak period this fall Chris Zaccarelli at Northlight Asset Management Inflation is increasing ever so slightly but right in line with forecasts and this morning s PCE material should only increase the probability of a Fed rate cut next month Although September is typically the weakest month of the year on average we don t see anything on the horizon to knock this bull sphere off its path If anything if there is any volatility in September or October which would be typical for this time of year it will likely prove to be a great buying opportunity as we are setting up to rally into year end especially if the Fed is cutting rates outside of a recession Atakan Bakiskan at Berenberg The Fed s preferred measure of inflation rose bang on with the consensus expectation and nothing stands out in the present day s release that would derail the Fed which remains laser-focused on labor region weakness from cutting rates in September The Fed now leans more against downside risks to labour sector than to upside risks to inflation even though it was the other way around just a month ago Therefore so long as the nonfarm payroll account next Friday does not change the narrative of a labour sphere on the verge of a collapse the door is wide open for a September rate cut Corporate Highlights The Trump Administration will revoke waivers for the use of US technologies by the Chinese operations of an Intel Corp unit Samsung Electronics Co and SK Hynix Inc dealing another blow to China s access to advanced chipmaking know-how Super Micro Computer Inc cautioned that weaknesses in its controls related to financial disclosures could if not fixed hurt the company s ability to assessment results in a timely and accurate manner Marvell Apparatus Inc s results featured a disappointing read on its input center business It also gave a revenue outlook that is below expectations raising concerns about its position with AI Just weeks after its last quarterly review Caterpillar Inc is warning investors it now expects tariffs to have an even greater impact on its business costing it as much billion this year Gap Inc expects its margins will shrink this year a sign tariffs are slowing latest turnaround momentum Petco Robustness Wellness Co Inc surged as much as after raising its earnings targets for the year as the company s turnaround starts showing signs of progress Ulta Beauty Inc raised its full-year outlook after reporting second-quarter results that topped expectations even as it warned of a promising pullback by consumers UK users of the Mounjaro obesity shot will be spared the full impact of maker Eli Lilly Co s price increase as various pharmacies opt to shield customers at least for now Alibaba Group Holding Ltd released a surge in revenue from China s AI boom helping offset a surprise drop in profit tied to a worsening battle with Meituan and JD com Inc in internet commerce Huawei Technologies Co posted a first-half profit getting back into the black after the emergence of DeepSeek ignited a wave of AI maturation across China BYD Co s profit jumped in the first half on robust demand for its electric vehicles and an aggressive expansion into international markets as it seeks to shake off headwinds at home Specific of the main moves in markets Stocks The S P fell as of a m New York time The Nasdaq fell The Dow Jones Industrial Average fell The Stoxx Europe fell The MSCI World Index fell Bloomberg Magnificent Total Return Index fell The Russell Index fell Currencies The Bloomberg Dollar Spot Index was little changed The euro rose to The British pound was little changed at The Japanese yen was little changed at per dollar Cryptocurrencies Bitcoin fell to Ether fell to Bonds The yield on -year Treasuries advanced three basis points to Germany s -year yield advanced three basis points to Britain s -year yield advanced three basis points to The yield on -year Treasuries was little changed at The yield on -year Treasuries advanced five basis points to Commodities West Texas Intermediate crude fell to a barrel Spot gold rose to an ounce More stories like this are available on bloomberg com Bloomberg L P