New York, August 29, 2025 — U.S. equities slipped on Friday as traders took profits after several days of strong gains. Technology shares bore the brunt of the selling, dragging major benchmarks into the red.
Nasdaq Takes the Heaviest Hit
The Nasdaq Composite led the decline, tumbling 259 points, or 1.2%, to 21,445.80. The S&P 500 lost 48 points, or 0.7%, to close at 6,453.88, while the Dow Jones Industrial Average dropped 188 points, or 0.4%, to finish at 45,448.63.
Although all three indexes pared losses from earlier in the session, they remained in negative territory throughout the day.
Investors Lock In Gains After Record Week
The downturn followed a string of record-setting closes earlier this week. On Thursday, the S&P 500 set a fresh closing high, capping several sessions of upward momentum. Analysts say Friday’s decline reflected profit-taking as traders cashed out on recent market strength.
Tech Sector Spotlight: Semiconductors and hardware stocks dragged markets lower—watch this analysis to see how the sell-off unfolded and what it could mean ahead.
Inflation Data Reinforces Rate-Cut Expectations
Economic reports released Friday showed inflation rising in line with expectations. The Personal Consumption Expenditures (PCE) index, the Federal Reserve’s preferred inflation gauge, increased 0.2% in July, cooling slightly from June’s 0.3% rise.
Year-over-year, PCE inflation held steady at 2.6%, while the core index — which excludes food and energy — climbed 0.3% month-over-month and edged higher to 2.9% annually.
The data strengthened expectations for a Federal Reserve rate cut in September, though many traders believe the move is already factored into current prices.
Political Spotlight: Fed Governor Cook Case
Adding to market chatter, a federal judge in Washington heard Fed Governor Lisa Cook’s petition to block President Donald Trump’s attempt to remove her from the central bank. The outcome could shape political pressure on the Fed in the months ahead.
Sector Performance: Tech Weakness Dominates
- Semiconductor stocks slumped, sending the Philadelphia Semiconductor Index down 3.1%.
- Hardware shares also weighed on the market, with the NYSE Arca Computer Hardware Index falling 2.2%. Dell Technologies (DELL) plunged 8.8% after issuing weak guidance despite strong quarterly results.
- Brokerage, networking, and software stocks all posted notable losses.
- Gold mining stocks, however, climbed as bullion prices rose, providing a safe-haven boost.
Global Markets Mixed, Bond Yields Rise
Overseas, Asia-Pacific markets delivered a mixed close. Japan’s Nikkei 225 slipped 0.3%, while China’s Shanghai Composite advanced 0.4%. In Europe, sentiment was weaker: the CAC 40 fell 0.4%, the DAX declined 0.3%, and the FTSE 100 eased 0.1%.
In U.S. bonds, Treasuries gave back recent gains, pushing the yield on the 10-year note higher by 1.9 basis points to 4.226%.
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