04:51 PM EDT, 08/29/2025 (MT Newswires) -- The S&P 500 and the Dow Jones Industrial Average retreated on Friday from record highs amid growing inflation concerns, leaving Wall Street to finish the week in negative territory.

The S&P 500 fell 0.6% to 6,460.3, while the Dow slipped 0.2% to 45,544.9. Both measures closed at all-time peaks on Thursday. The Nasdaq Composite declined 1.2% at 21,455.6.

Among sectors, technology saw the steepest decline, while health care paced the gainers.

The Nasdaq and the Dow fell 0.2% each on the week, with the S&P 500 falling 0.1%.

The S&P 500 still recorded its fourth consecutive monthly gain.

Core personal consumption expenditures inflation, which excludes food and energy and is the Federal Reserve's preferred price metric, accelerated to 2.9% annually in July, marking the largest year-on-year gain since February, the Bureau of Economic Analysis reported. The annual headline inflation rate held at 2.6%.

"We expect more unwelcome and tariff-induced price inflation to surface in the months ahead," BMO Chief US Economist Scott Anderson said in a note on Friday.

Consumer spending rose in July at the fastest pace since March, BEA data showed.

"Until now, businesses have largely avoided passing on higher costs by stockpiling inventories, substituting away from highly tariffed imports, or absorbing the increases themselves," TD Economics said. "These strategies aren't sustainable indefinitely, and we expect greater passthrough of tariff-related price increases in the coming months."

US consumer sentiment fell in August amid concerns over economic health, while inflation expectations rebounded, according to a survey by the University of Michigan.

Last week, Fed Chair Jerome Powell struck a more dovish tone than expected in his speech to the Fed's annual Jackson Hole policy conference, indicating a possible pivot to lower rates. At the time, Powell highlighted downside risks to employment and suggested that tariff-driven inflation pressures may prove transitory.

Markets are currently pricing in a roughly 87% probability that the central bank will lower its benchmark lending rate by 25 basis points next month, according to the CME FedWatch tool. The remaining odds are in favor of another pause.

US Treasury yields were mixed, with the two-year rate falling 1.6 basis points to 3.62% and the 10-year rate increasing 2.1 basis points to 4.23%.

In company news, Dell Technologies ( DELL ) shares were down 8.9%, the worst performer on the S&P 500. The personal computer maker late Thursday beat Wall Street's estimates for its fiscal second quarter, though revenue in the consumer category of its client solutions group -- which includes PCs -- declined 7% year over year.

UBS Securities said in a note emailed Friday that Dell likely continued losing market share in the PC market, but momentum in artificial intelligence orders should help drive its share price higher.

Marvell Technology ( MRVL ) shares sank 19%. The semiconductor solutions provider late Thursday issued a fiscal third-quarter revenue outlook below market estimates and reported results for the previous three-month period in line with expectations.

Autodesk ( ADSK ) shares were up 9.1%, the top gainer on the S&P 500. The software company raised its full-year outlook late Thursday after delivering a fiscal second-quarter beat.

West Texas Intermediate crude oil was down 0.9% at $64.03 a barrel.

Gold rose 1.2% at $3,517.1 per troy ounce, while silver jumped 2.7% to $40.79 per ounce.