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Friday Afternoon Coffee - Markets Update - 29 Aug 2025 - Tech Selloff Drags Wall St Lower; Dollar Slips Ahead of Fed Cut, Gold Nears Record
- The Trade Academy Team
- Aug 29
- 3 min read
Markets Update: Wall Street retreated Friday as losses in Dell and Nvidia weighed on the technology sector, while investors digested inflation data showing tariffs beginning to feed into consumer prices. The dollar weakened on growing expectations of a Federal Reserve rate cut next month, while gold advanced toward record levels.
Global Markets Roundup: 29 August 2025
Stocks Slide on Tech Weakness, Tariff Pressures
U.S. equities fell across the board, led by sharp declines in technology names.
Dow Jones Industrial Average: -195.30 points (-0.43%) to 45,441.60
S&P 500: -49.14 points (-0.76%) to 6,452.72
Nasdaq Composite: -271.42 points (-1.25%) to 21,433.74
Dell plunged 8.4% after forecasting quarterly profit below estimates, dragging the broader S&P technology index down 1.7%. Nvidia slipped 3.5% as its cautious outlook on China demand weighed on chipmakers, with the Philadelphia Semiconductor Index tumbling 2.8%.
Marvell shed 16% after issuing weaker-than-expected revenue guidance, while Caterpillar slid 4.5% after warning tariff-related costs will rise further in 2025.
The Russell 2000 fell 0.6% but remains the month’s strongest performer, having outpaced the larger indexes in August.
Market breadth was negative: decliners outnumbered advancers by 1.25-to-1 on the NYSE and 1.78-to-1 on the Nasdaq. The S&P 500 logged 21 new highs, while the Nasdaq registered 58 highs and 55 lows.
Fed, Inflation and Tariffs in Focus
The Commerce Department reported the Fed’s preferred inflation gauge, the Personal Consumption Expenditures (PCE) Price Index, rose 2.6% in July year-over-year—matching forecasts but above the central bank’s 2% target. Core prices suggested tariffs were beginning to filter into goods costs.
The expiration Friday of tariff exemptions on packages under $800 is expected to further lift costs for businesses and consumers.
Despite the inflation uptick, markets continue to anticipate a September rate cut. CME’s FedWatch tool showed an 87% probability of a 25-basis-point easing, up from 63% a month earlier.
All eyes now turn to next Friday’s nonfarm payrolls report.
Meanwhile, political tensions around the central bank persisted. A federal judge agreed to fast-track hearings in Fed Governor Lisa Cook’s legal fight against President Donald Trump’s attempt to dismiss her. Fed Governor Christopher Waller—considered a contender for the Fed chair role—reiterated Thursday that he supports rate cuts beginning in September.
Dollar Weakens, Euro Edges Higher
The dollar slipped Friday, poised for a nearly 2% August decline against peers.
China’s yuan strengthened to a 10-month high, supported by firm central bank guidance and a buoyant domestic stock market. The Indian rupee, however, slid to a record low as steep U.S. tariffs threatened growth.
Gold Rallies Toward Record; Oil Declines
Gold futures rose 1.1% to $3,513.0/oz, bringing weekly gains to 2.8%. The metal is closing in on its all-time high of $3,534.20/oz set earlier in August amid tariff uncertainty.
Oil prices fell as demand concerns weighed and reports of a possible ceasefire in Ukraine pressured sentiment:
WTI Crude: -0.9% to $64.00/barrel
Brent Crude: -0.7% to $68.10/barrel
Commodities Mixed
Coffee: Arabica futures climbed to $3.95/lb as U.S. roasters scrambled to secure supplies.
Cotton: Fell toward 65 cents/lb, down 1.9% for the week, hurt by weaker demand after U.S. tariffs on Indian goods took effect August 27.
Wheat (CBOT): Dipped to $5.29/bushel, near recent lows.
Outlook
Markets remain focused on Fed policy, inflation, and trade fallout. With tariffs feeding into prices and political risks clouding the Fed’s independence, next week’s jobs report could prove pivotal in shaping both monetary policy and investor sentiment.
Looking forward, refer to the economic calendar below to see the upcoming events scheduled for today and the rest of the week.
General news - Information source from multiple newswires.
The article and the data is for general information use only, not advice!
The Trade Academy Team
