Overview

• Stocks slipped in morning trading, with the S&P 500 down about 0.7%, the Nasdaq off 1.1% and the Dow lower by roughly 0.4% after setting record highs the day before.
• July PCE inflation rose 2.6% year over year and core PCE ticked up to 2.9%, the highest since February and the last key inflation reading before the Sept. 16–17 FOMC meeting.
• Rate-cut expectations stayed elevated despite the data, with CME-linked odds pointing to a likely September move as Chair Jerome Powell signaled openness and Fed Governor Christopher Waller endorsed starting cuts.
• Technology shares led declines: Nvidia fell roughly 3%, Broadcom slid more than 4% and Oracle dropped nearly 7%, while Dell sank around 8% and Marvell tumbled after giving weaker guidance; Ulta also traded lower despite a beat.
• Resilient growth remained a counterweight as Q2 GDP was revised up to 3.3% annualized and the S&P 500 had closed above 6,500, even as tariff-related cost warnings from firms like Caterpillar fed into inflation concerns.