NEW YORK, New York - U.S. stocks fell Friday despite the latest PCE price index showing inflation is under control..

Core inflation rose slightly in July, with the core personal consumption expenditures (PCE) price index—which excludes food and energy—increasing at a 2.9 percent annual rate, according to Friday's Commerce Department report. That's up 0.1 percentage point from June and marks the highest level since February, though it matched economists' expectations.

Month-over-month, core PCE rose 0.3 percent, while the broader all-items PCE index climbed 0.2 percent monthly and 2.6 percent annually, both also in line with forecasts.

Friday's closings capped a week marked by cautious sentiment and mixed economic signals. Tech stocks led the declines.

The S&P 500 fell 41.60 points, or 0.64 percent, to finish at 6,460.26, weighed down by weakness in consumer discretionary and information technology sectors. The index retreated as investors digested fresh inflation data and weighed its implications for future Federal Reserve policy.

The Dow Jones Industrial Average posted a more modest decline, slipping 92.02 points, or 0.20 percent, to end at 45,544.88. Losses in financials and industrials were partially offset by resilience in defensive sectors.

The tech-heavy NASDAQ Composite saw the sharpest drop among the major indexes, losing 249.61 points, or 1.15 percent, to close at 21,455.55. High-valuation growth stocks came under pressure amid rising Treasury yields and concerns over future earnings growth.

Global forex markets see non-U.S. dollar currencies edge higher amid cautious optimism

The global foreign exchange market closed out the week on a cautiously upbeat note Friday, as traders digested economic data and central bank signals, resulting in modest shifts across major currency pairs. The U.S. dollar drifted lower, almost across the board, but for the Japanese yen which edged higher.

The euro strengthened against the U.S. dollar, with the EUR/USD pair rising 0.13 percent to last trade at 1.1698. The single currency saw support from eurozone inflation readings that aligned with European Central Bank targets, bolstering investor sentiment about the region's monetary trajectory.

In Asia, the U.S. dollar gained modestly against the Japanese yen, with USD/JPY ticking up 0.03 percent to 146.97, as traders assessed recent comments from the Bank of Japan suggesting continued caution around tightening policy despite resilient inflation data.

The Canadian dollar posted gains, sending USD/CAD down 0.15 percent to 1.3728. A recovery in oil prices and better-than-expected GDP figures supported the loonie, helping it reverse earlier losses against the greenback.

The British pound ended the session nearly flat but slightly higher, with GBP/USD inching up 0.01 percent to 1.3512. The movement came amid subdued UK retail sales data, which kept investors on edge about the strength of domestic consumer demand.

The Swiss franc strengthened, pushing USD/CHF lower by 0.17 percent to 0.8000. The franc's safe-haven appeal continued to attract flows in a risk-sensitive environment, particularly amid geopolitical tensions and slower global trade growth.

Commodity-linked currencies posted the largest gains of the session. The Australian dollar rose 0.23 percent, with AUD/USD closing at 0.6546, buoyed by rising iron ore prices and a rebound in Chinese industrial activity. Similarly, the New Zealand dollar advanced 0.29 percent, as NZD/USD ended at 0.5900, supported by improving consumer sentiment and anticipation of stable rates from the Reserve Bank of New Zealand.

Overall, currency markets remained relatively stable heading into the weekend, with investors awaiting further cues from upcoming central bank meetings and economic indicators.

Global stock markets conclude Friday with a mostly negative tone

Canada's S&P/TSX Composite Index advanced 129.65 points, or 0.46 percent, to close at28,564.45. The rally was supported by gains in energy and materials stocks, buoyed by firming commodity prices and a weaker U.S. dollar.

In the UK, the FTSE 100 slipped to 9,187.34, down 29.48 points, or 0.32 percent, reflecting pressure from UK bank stocks as investors brace for potential windfall tax proposals.

Germany's DAX followed a similar path, falling 137.71 points to 23,902.21, trading 0.57 percent lower.

In France the CAC 40 dipped 58.70 points (0.76 percent) to close at 7,703.90, while the EURO STOXX 50 declined 45.00 points (0.83 percent) to 5,351.73.

Elsewhere on the continent, Euronext 100 slipped by 10.94 points (0.68 percent) to end at 1,589.78, and Belgium's BEL 20 retreated 25.42 points (0.53 percent) to close at 4,798.55.

In Asia and the Pacific, markets showed a mixed picture. Hong Kong's Hang Seng Index rose 78.80 points (0.32 percent) to 25,077.62, while Singapore's STI gained 15.92 points (0.37 percent) to reach 4,269.70.

In mainland China, the Shanghai Composite rose 14.33 points (0.37 percent) to 3,857.93, while Japan's Nikkei 225 fell 110.32 points (0.26 percent) to close at 42,718.47.

In Australia the S&P/ASX 200 edged down by 6.90 points (0.08 percent) to close at 8,973.10, though the broader All Ordinaries eked out a modest gain of 1.90 points (0.02 percent) to 9,243.00.

New Zealand's S&P/NZX 50 climbed 27.65 points (0.21 percent) to 12,930.73.

Elsewhere, India's S&P BSE Sensex fell 270.92 points (0.34 percent) to 79,809.65, while in Indonesia the IDX Composite had one of the worst performances, sliding 121.59 points (1.53 percent) to 7,830.49.

Malaysia's KLSE Composite dropped 11.95 points (0.75 percent) to land at 1,575.12. On the other hand, South Korea's KOSPI slipped slightly by 10.31 points (0.32 percent) to 3,186.01, and Taiwan's TWSE was nearly flat, edging down 3.35 points (0.01 percent) to 24,233.10.

In South Africa the JSE showed little movement, declining just 3.44 points (0.06 percent) to 5,721.94. 

Middle East markets were mostly closed on Friday, amnd will re-open on Sunday.

Big News Network | Global Market Wrap — Friday

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