US Stocks Retreat from Records as PCE Inflation Data Matches Estimates

Futures on the Dow Jones Industrial Average and the S&P 500 both fell about 0.3%, while contracts on the tech-heavy Nasdaq 100 led the retreat, down 0.4%. The Core Personal Consumption Expenditures index, a key Fed-watched measure of inflation, rose 0.3% monthly and 2.9% annually, matching economist expectations.

Market sentiment remains cautious as traders price in an 85% chance of a quarter-point Fed rate cut in September. Governor Christopher Waller's recent comments about "fully expecting" further easing amid labor market cracks have reinforced dovish expectations.

The inflation data caps a volatile week dominated by Nvidia earnings and political developments. While traditional markets digest these signals, cryptocurrency traders watch for potential spillover effects on digital asset valuations.