Wall Street Pulls Back as Inflation Concerns Resurface

📉 US markets slipped from recent highs on Friday, as fresh inflation data sparked caution among investors. 🚦 Key Index Movements: ✅ Dow Jones dipped 0.2% ✅ S&P 500 dropped 0.6% ✅ Nasdaq Composite fell 1.1%, led by Nvidia sliding 3% post-earnings 🔍 Inflation Insight: - July’s core PCE index, the Fed’s preferred inflation gauge, rose 0.3% MoM and 2.9% YoY—the fastest pace since February and above the Fed’s 2% target. - Consumer sentiment declined to a three-month low, with rising expectations of higher inflation ahead. 📈 Despite the pullback, monthly gains remain robust: - Dow up 2% for the 4th consecutive month - S&P 500 climbed 1.6% marking its 4th straight monthly gain - Nasdaq extended its winning streak to 5 months, the longest in 18 months, with a 2% rise - Russell 2000 surged 6%, continuing its 4th monthly gain, the longest in over 4 years ⚡ Market Outlook: - Investors still price in an 87% chance of a Fed rate cut in September. - Political uncertainty surrounds Fed governor Lisa Cook’s future, adding to market jitters.