The Dow Jones Industrial Average (^DJI) fell around 0.2%, and the S&P 500 (^GSPC) lost 0.6% as inflation data raised concerns about the Federal Reserve's ability to meet its 2% target .
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finance.yahoo.comThe tech-heavy Nasdaq Composite (^IXIC) dropped over 1.1%, marking the end of its fifth consecutive monthly gain after hitting record highs in August .
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finance.yahoo.comInflation Data Sparks Market Anxiety.A key measure of inflation rose 0.3% monthly and 2.9% annually in July, exceeding the Fed's 2% target and signaling persistent price pressures .
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finance.yahoo.comThis follows a three-month low in consumer sentiment, with University of Michigan survey respondents expecting inflation to surge over the next year .
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finance.yahoo.comThe data caps a volatile week marked by Nvidia earnings and political tensions over Federal Reserve governance.Tech Sector Leads Retreat.Big Tech stocks slumped as the Nasdaq Composite led the decline, down 1.1% after its fifth straight monthly gain.Nvidia (NVDA) fell over 3% following its earnings report, while Tesla (TSLA) saw mixed results despite Trump's promotional support .
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investopedia.comAnalysts warned that delayed AI features for Siri could hurt iPhone sales projections, extending Apple's recent downturn .
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investopedia.comTrade Tensions Intensify Market Volatility.US-EU trade tensions escalated as the European Union imposed 50% tariffs on American spirits like bourbon, prompting threats of retaliatory measures from President Trump .
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cnn.comThe S&P 500 closed in correction territory, down over 10% from its February high, marking its first correction in over a year .
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cnn.comMarkets faced heightened uncertainty as Trump vowed to maintain 25% tariffs on steel and aluminum, exacerbating fears of economic disruption .
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cnn.comMarket Correction Concerns Grow.The S&P 500's decline to 5,521.52 reflects a 10.1% drop from its February peak, with the Nasdaq falling 14.2% since December's record high .
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cnn.comAnalysts noted that while cooling inflation data provided temporary relief, ongoing trade disputes and policy uncertainty have driven volatility, pushing the Cboe Volatility Index to its highest level since December .
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cnn.comSectoral Divergence Amidst Turmoil.While tech stocks faced headwinds, energy and industrial sectors showed resilience.The Russell 2000 (^RUT) eyed a 6% jump for August, extending its longest monthly winning streak in over four years .
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finance.yahoo.comHowever, discount retailers like Dollar Tree (DLTR) and Target (TGT) saw steep declines due to macroeconomic pressures and tariff-related concerns .
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investopedia.comLong-Term Trends Signal Caution.Despite the pullback, major indices remained on track for their longest consecutive monthly gains in over a year.The S&P 500 and Dow were set for fourth straight months of gains, while the Nasdaq's five-month streak highlighted sustained investor confidence in tech innovation .
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finance.yahoo.comYet, market participants warned that unresolved inflation risks and geopolitical tensions could prolong volatility.Policy Uncertainty Remains Key Factor.Federal Reserve officials face mounting pressure to balance inflation control with economic growth.With traders pricing in an 87% chance of a Fed rate cut in September, the central bank's next move will be critical in determining market direction .
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finance.yahoo.comMeanwhile, ongoing political developments, including Trump's efforts to influence Fed policy, continue to shape investor sentiment.
