Wall Street dips as inflation worries resurface
US stocks took a step back from their recent record highs on Friday.
The S&P 500 dropped 0.8%, led by losses in big tech names like Dell, NVIDIA, and Oracle.
Dell posted revenue that exceeded expectations, but noted margin pressures and weak PC revenue.
Investors are feeling cautious with inflation still above target and consumer confidence dipping.
Consumer confidence takes a hit
If you're following the markets or thinking about investing, these moves signal how sensitive things are to inflation and interest rate chatter.
July's core inflation ticked up to 2.9%—still above the Fed's 2% goal—while overall price growth held steady at 2.6%.
People are also feeling less optimistic about the economy, which can affect spending and jobs.
Fed rate cut expectations create volatility
The Federal Reserve might cut rates as soon as September, with traders betting there's an 87% chance it happens next month due to signs of a weaker job market.
That hope for lower borrowing costs is shaking up stock prices, especially in tech, while everyone waits to see what comes next for growth and inflation.