Wall Street Wobbles as Tech Stocks Slide on Inflation Woes

Wall Street's major stock indexes experienced a downturn on Friday, largely impacted by declines in technology stocks such as Dell and Nvidia. Dell plummeted by 8.4% following a projection of quarterly profits below expectations, leading the slide on the S&P 500. The technology sector overall shed 1.7%, signaling a cool-off from its year-long rally.

The chipmaker Nvidia saw a 3.5% decrease, contributing to a 2.8% slide in the chipmakers' index after delivering lackluster forecasts for the Chinese market, missing investors' high anticipations. Concurrently, the Commerce Department's report showed that the Federal Reserve's favored inflation gauge, the Personal Consumption Expenditures Price Index, rose 2.6% annually in July, surpassing the 2% target.

Tariffs have begun influencing prices, marked by the end of tariff exemptions on packages under $800, escalating costs for businesses and consumers. Despite these inflationary concerns, the expectation of a 25 basis point rate cut in September remains stable following Federal Reserve Chair Jerome Powell's dovish remarks on labor market weakness.

(With inputs from agencies.)