NEW YORK, Aug. 29 (Xinhua) -- U.S. stocks closed lower on Friday as fresh inflation data highlighted that rising prices remain a concern heading into the new month.
The Dow Jones Industrial Average dropped 92.02 points, or 0.2 percent, to 45,544.88. The S&P 500 declined 41.6 points, or 0.64 percent, to 6,460.26. The Nasdaq Composite Index fell 249.61 points, or 1.15 percent, to 21,455.55.
Six of the 11 major S&P 500 sectors finished in positive territory. Health led the gainers with a 0.73 percent increase, followed by consumer staples, which rose 0.64 percent. Technology and consumer discretionary were the worst performers, slipping 1.63 percent and 1.14 percent, respectively.
The U.S. Commerce Department reported that the core personal consumption expenditures (PCE) price index, which excludes food and energy, rose at a 2.9 percent seasonally adjusted annual rate in July. On a monthly basis, the core PCE climbed 0.3 percent, matching economists' expectations.
"The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation," said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. "Today's in-line PCE Price Index will keep the focus on the jobs market. For now, the odds still favor a September cut."
Meanwhile, the U.S. Consumer Sentiment Index, released by the University of Michigan (UM) Surveys of Consumers, fell to 58.2 in August, down from 61.7 in July and well below last August's 67.9. The Current Economic Conditions Index dropped to 61.7 from 68.0, and the Index of Consumer Expectations declined to 55.9 from 57.7, both showing weakening consumer confidence.
"Although consumers no longer fear the catastrophic scenarios they anticipated in the wake of the April tariff announcements, they believe that the current trade environment continues to pose threats to the multiple facets of the economy," said economist Joanne Hsu, director of the UM's Surveys of Consumers.
