3 Economic Reports That Could Affect Your Portfolio This Week, September 1-5, 2025

Stocks retreated from record highs as a Friday sell-off dragged major indices lower. The Dow Jones Industrial Average slipped 0.19%, while the S&P 500 edged down 0.10%. Tech stocks bore the brunt of the decline, with the Nasdaq-100 falling 0.35% amid pressure on Nvidia and semiconductor shares.

Market attention now shifts to economic data following the conclusion of earnings season. July's PCE inflation report met expectations, showing only modest price increases and failing to disrupt prevailing expectations for a September rate cut. The data suggests recent tariff hikes have yet to significantly impact consumer prices, despite rising producer inflation.

Federal Reserve Chair Jerome Powell's recent dovish remarks at Jackson Hole strengthened bets on imminent rate cuts. Policymakers have maintained rates this year, balancing inflation concerns against emerging labor market softness. This delicate equilibrium continues to shape market sentiment as investors weigh competing economic signals.