Despite hitting fresh record highs midweek, U.S. equities lost steam by Friday, Aug. 29, as inflation indicators complicated the Federal Reserve\u2019s path forward on interest rates.\u00a0<\/p>\n
The Core Personal Consumption Expenditures price index \u2014 the Federal Reserve\u2019s preferred measure of underlying inflation \u2014 rose 2.9% year-over-year in July, the highest reading in five months.\u00a0\u00a0<\/p>\n
Just a week earlier, Fed Chair Jerome Powell hinted that easing rates might soon be appropriate. But the new data reintroduces a layer of uncertainty into that timeline, especially as inflation remains above the Fed\u2019s 2% target.\u00a0<\/p>\n
Adding to economic headwinds, the U.S. goods trade deficit surged to $103.6 billion in July, up $18.7 billion from June and well above Wall Street forecasts of $89.5 billion. This marks the largest gap since March, when the deficit hit a record $162 billion.\u00a0<\/p>\n
The worsening balance underscores concerns that President Donald Trump\u2019s tariff policies may not be delivering the intended improvements to the trade balance.\u00a0<\/p>\n
Nvidia \u2014 the world\u2019s largest publicly traded company \u2014 struggled to lift markets despite posting strong quarterly results.\u00a0\u00a0<\/p>\n
The chipmaker topped Wall Street estimates on both revenue and earnings per share, but its forward guidance came in only modestly above expectations.\u00a0\u00a0<\/p>\n
For investors used to blockbuster beats and aggressive outlooks from the AI bellwether that helped drive this year\u2019s rally, the update fell short. Shares declined for a third straight week, extending the stock\u2019s recent losing streak.\u00a0<\/p>\n