US stocks closed lower on Aug 29, retreating from record highs as losses in Dell and Nvidia dragged the market, while fresh inflation data showed tariffs beginning to feed into prices, Reuters reported.
The S&P 500 fell 0.64% to 6,460.26, the Nasdaq dropped 1.15% to 21,455.55 and the Dow slipped 0.2% to 45,544.88. Despite the pullback, all three indexes logged solid monthly gains, supported by expectations that the Federal Reserve (Fed) will cut rates by 25 basis points in September.
Dell shares tumbled nearly 9% after surging costs for artificial intelligence (AI)-optimised servers and fierce competition overshadowed its upbeat demand outlook. Nvidia fell 3.4%, extending a three-day slide after its earnings report tempered sky-high investor expectations. Marvell sank almost 19% on weak revenue guidance, while Caterpillar shed 3.7% as tariff-related costs clouded its 2025 outlook.
In contrast, Alibaba jumped 13% after reporting robust cloud growth and unveiling a new AI chip, making it one of Wall Street’s most-traded stocks. Healthcare and consumer staples led sector gains, while technology slumped 1.6%.
Economic data showed consumer spending rising at the fastest pace in four months, with services inflation firming. Economists said this is unlikely to derail Fed rate-cut plans, even as tariffs on imports add mild price pressures.
For August, the S&P 500 rose 1.9%, the Dow gained 3.2%, and the Nasdaq added 1.6%. The Russell 2000 dipped 0.5% on the day but climbed 7% in the month.
US markets will be closed on Sept 1 for the Labour Day holiday.
