Market Retreats Ahead of Long Weekend Despite Strong Monthly Gains

The S&P 500 dipped 0.64% on Friday, trimming its weekly advance but still securing a fourth consecutive monthly gain. Traders pulled back ahead of the holiday weekend, even as the index closed at a record high above 6,500 the previous day. The Nasdaq Composite fell 1.15%, while the Dow Jones Industrial Average slipped 0.20%.

Nvidia stumbled 3% despite reporting 56% revenue growth, as reports surfaced of Alibaba's advanced chip development—a potential challenge to Nvidia's dominance amid U.S. export restrictions. Alibaba's U.S.-listed shares surged 13% on the news.

Core PCE inflation ROSE to 2.9% in July, matching estimates but marking the highest reading since February. The data reinforced Fed caution, adding to market unease as September—historically a tough month for equities—approaches.