Stocks Latest Market News: Broad Sell-Off Driven by Tech and Inflation Concerns
Estimated reading time: 4 minutes
- Tech and AI stocks led a broad market decline.
- Inflation concerns fueled the sell-off.
- Treasury yields reacted to inflation data.
- Some sectors, like Alibaba, showed resilience.
- U.S. markets closed on Monday for Labor Day.
Contents
- Tech and AI Stocks Lead Market Decline Following Inflation Report
- Market Reaction and Index Performance
- Treasury Yield Movements
- Individual Stock Performance
- Sectors Showing Resilience
- July Core PCE Inflation Report
- What to Watch Next
- CTA
Tech and AI Stocks Lead Market Decline Following Inflation Report
A sharp sell-off in major U.S. technology and artificial intelligence (AI) stocks triggered a broad market decline on Friday, August 29, 2025, culminating at market close. The downturn followed the release of the July Core Personal Consumption Expenditures (PCE) inflation report at 12:30 p.m. UTC (8:30 a.m. ET). The report, which showed inflation remaining above target, fueled concerns about the Federal Reserve’s policy trajectory and impacted investor sentiment across major equity indices. Schwab Trading Economics
Market Reaction and Index Performance
The immediate market reaction was a noticeable decline across major indices. The S&P 500 (SPX) fell by -0.64% to 6460 points, while the Nasdaq 100 (NDX) experienced a more significant drop of -1.2%. Trading Economics The Dow Jones Industrial Average (DJIA) also declined, falling by 0.2% (down 92 points). Trading Economics The Russell 2000 (RUT), representing small-cap stocks, demonstrated relative strength, outperforming the Nasdaq during August. Futunn News The VIX volatility index, often seen as a measure of market fear, increased by +0.10 points (+0.76%) to 14.53, reflecting heightened uncertainty. Schwab
Treasury Yield Movements
U.S. Treasury yields also reacted to the inflation data. The 10-year Treasury yield rose by +2.3bps to 4.23%, while the 2-year Treasury yield saw a different trend, decreasing by -33bps in August, hinting at increased expectations for rate cuts. Trading Economics Futunn News Schwab
Individual Stock Performance
The sell-off was particularly pronounced among mega-cap technology and AI stocks. Nvidia, a key player in the AI sector, experienced a decline of -3.4%. Trading Economics Futunn News Other significant decliners included Dell (-8.9%), attributed to competition and AI cost pressures; Oracle (-5.9%); Tesla (-3.5%); Marvell (-18.6%), impacted by tariff and revenue concerns; and Caterpillar (-3.6%). Trading Economics Futunn News
Sectors Showing Resilience
In contrast to the broader tech sell-off, some sectors demonstrated resilience. Notably, Alibaba ADRs saw a significant surge, gaining +12.9% in the US session and +13% in the Asian session, marking its best single-day gain since March 2023, driven by strong cloud segment results. Trading Economics Futunn News The China concept index also performed well, rising +1.55% on Friday and +6% for the month of August, marking its fourth consecutive monthly advance. Futunn News
July Core PCE Inflation Report
The July Core PCE inflation reading came in at +2.9% year-over-year, representing the fastest pace since February and aligning with pre-release forecasts. Trading Economics While the data increased the probability of future Fed rate cuts, the persistence of inflation above the target level remains a key concern. Schwab Trading Economics It’s worth noting that U.S. markets will be closed on Monday for Labor Day. Trading Economics There were no major earnings releases for U.S. mega-cap companies in the reported period, except for Alibaba’s outperformance. Trading Economics Futunn News
What to Watch Next
- Further market reactions to the July Core PCE inflation data and its implications for the Federal Reserve’s monetary policy.
- The performance of technology and AI stocks in the coming trading sessions.
- Any updates on economic indicators that could shed light on inflation’s trajectory.
CTA
Stay ahead of the market with our AI-powered finance news platform. We continuously scan and verify trusted sources to surface the most important developments from the last 12 hours, distilled into clear takeaways. Bookmark this page, enable alerts, or follow our channels to get timely updates as they break.
