Inflation Data Drives Wall Street's Technology Stocks Down

Wall Street's main stock indexes fell on Friday, with technology stocks declining the most. The fall was catalyzed by inflation data coming in higher than the Federal Reserve's target, raising concerns over tariffs' impact on prices.

The Personal Consumption Expenditures Price Index, the Fed's preferred inflation gauge, rose 2.6% in July as anticipated—still above the central bank's 2% target. This increase highlighted concerns about U.S. tariffs on imports affecting goods prices.

Although hopes remain for a September interest-rate cut, further exacerbated by Fed Chair Jerome Powell's remarks on labor market weakness, the market environment remains volatile. The cessation of the U.S. tariff exemption for sub-$800 package imports indicates rising business costs, affecting consumers.

(With inputs from agencies.)