Dow Jones Futures Slip After Inflation Data; Nvidia, Caterpillar Lead Declines
U.S. stock index futures retreated on August 29 as PCE inflation data met expectations, while Nvidia and Caterpillar weighed heavily on the Dow.
New York, August 29 EST: U.S. markets opened the final trading day of August on shaky footing. Futures pointed lower before the bell, and even after the latest inflation numbers landed roughly as expected, stocks couldn’t shake the selling pressure. By late morning, the Dow Jones Industrial Average was down between 196 and 222 points, pulled lower by heavyweights close to 0.8%.
Futures Under Pressure Ahead Of Inflation Report
Traders went into Friday hesitant. Dow futures slipped about 0.26%, with similar losses for the S&P 500 and Nasdaq contracts. That reflected a market bracing for July’s Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge. The hesitation wasn’t about surprise, it was about confirmation.
Some names cut against the tide. Elastic and Affirm Holdings both jumped more than 15% after upbeat earnings. Marvell Technology, down 13%, and Dell, off 6%, reminded investors that tech remains a market of winners and losers, not just one directional bet.
Inflation Data Matches Forecasts, Losses Stick
The PCE report showed consumer prices rising 0.2% from June and 2.6% year-over-year. The numbers matched expectations, keeping intact the narrative that inflation is cooling but not gone. According to Reuters, Dow futures briefly extended losses after the data, down about 114 points, before stabilizing.
The reaction told a familiar story traders didn’t need good news, they just needed no bad news. Matching forecasts was enough to keep September’s rate-cut hopes alive.
Market Heavyweights Do The Damage
By the time the cash market opened, the story shifted to individual names dragging the broader indexes. Caterpillar’s 3.3% slide and Nvidia’s 3.2% drop together wiped out more than 120 points from the Dow, according to MarketWatch. That’s the burden of a price-weighted index a couple of giants can dictate the headline number, even if the broader market isn’t in freefall.
The S&P 500, less distorted by single-stock moves, showed a clearer picture off nearly 50 points, reflecting weakness in both tech and industrials.
Fed Still Holds The Cards
For Wall Street, today’s decline doesn’t feel like a turning point. If anything, it’s a market catching its breath after a summer rally. The PCE report gave the Fed cover to consider a rate cut in September, and traders aren’t walking away from that bet. As Barron’s noted, the central bank now has more room to maneuver without stoking inflation fears.
That said, volatility is creeping back in. September is historically Wall Street’s toughest month, and with mega-cap tech now driving swings in both directions, portfolio managers are rebalancing rather than chasing every rally.
What To Watch Next
The weekend won’t stop the speculation. Traders will parse every Fed speech ahead of the September meeting, looking for hints of a policy shift. In the meantime, the market is behaving like a late-stage earnings call the headline numbers matter, but it’s the guidance how companies and policymakers frame the next quarter that will decide direction.
For now, Friday’s losses underline a simple fact steady inflation data can calm nerves, but not enough to counterbalance a couple of heavyweight stocks rolling over.
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A Wall Street veteran turned investigative journalist, Marcus brings over two decades of financial insight into boardrooms, IPOs, corporate chess games, and economic undercurrents. Known for asking uncomfortable questions in comfortable suits.
