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Indexes off: Dow 0.10%, S&P 500 0.30%, Nasdaq 0.62%

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Court hearing of Fed's Cook scheduled for 10 a.m. ET

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US reports solid July consumer spending

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Dell, Marvell ( MRVL ) fall after dour quarterly forecasts

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Caterpillar ( CAT ) falls after forecasting bigger 2025 tariff hit

(Updates to after markets open)

By Johann M Cherian and Sanchayaita Roy

Aug 29 (Reuters) - Wall Street's main stock indexes fell

on Friday, with technology stocks declining the most, after

inflation data came in higher than the central bank's target as

expected and stoked concerns of tariffs feeding into prices.

The in-line numbers did little to change bets of an

interest-rate cut from the Federal Reserve in September,

especially considering Chair Jerome Powell's dovish comments at

Jackson Hole

where he acknowledged labor market weakness.

A Commerce Department report showed the Fed's preferred

inflation gauge, the Personal Consumption Expenditures Price

Index, rose 2.6% in July as expected on an annual basis - above

the central bank's 2% target.

A measure of underlying prices suggested U.S. tariffs on

imports were starting to reflect in the prices of some goods.

The U.S. tariff exemption for package imports valued under

$800 also ended on Friday, raising costs for businesses and, in

turn, consumers.

Traders are still pricing in a 25-basis-point rate cut in

September, according to data compiled by LSEG.

"The numbers released today... leave the door wide open for

the Fed to go ahead and cut in their September 17 meeting," said

Art Hogan, chief market strategist at B Riley Wealth.

While underlying price pressures are increasing, the central

bank has most likely shifted its focus to shoring up the job

market, Hogan said.

Next Friday's nonfarm payrolls report will offer more

insight on the labor market.

Fed Governor Christopher Waller, a candidate for the central

bank's top job, said on Thursday he wants to start cutting rates

next month, in line with President Donald Trump's calls to lower

borrowing costs.

At 09:43 a.m. ET, the Dow Jones Industrial Average

fell 45.36 points, or 0.10%, to 45,591.54, the S&P 500

lost 20.03 points, or 0.30%, to 6,482.34 and the Nasdaq

Composite lost 134.63 points, or 0.62%, to 21,570.53.

Rate-cut bets have put Wall Street's main indexes on

track for their fourth straight month of gains. The domestically

focused Russell 2000 index has benefited the most and

outperformed the main indexes in August. It was up 0.1% on

Friday.

Technology stocks weighed on the S&P 500, but

seven other sectors rose as investors pivoted to other pockets

of the market.

Personal computer maker Dell and chipmaker

Marvell ( MRVL ) fell 14.4% and 6.4% after their quarterly

forecasts missed expectations.

Nvidia ( NVDA ) lost 2.7%, a day after the AI chip leader's

dour China market expectations jolted investors accustomed to

blockbuster forecasts from the company. Still, strength in its

overall results and bullish comments from CEO Jensen Huang

calmed worries of an imminent slowdown in demand for artificial

intelligence.

Attention will now be on a court hearing at 10 a.m. ET where

a federal judge will consider whether to temporarily block

President Trump from firing Federal Reserve Governor Lisa Cook.

Among others, global economy bellwether Caterpillar ( CAT )

lost 3.1% after raising its annual estimate for

tariff-related costs.

Design software company Autodesk ( ADSK ) rose 11.2% after

raising its annual results forecasts.

Advancing issues outnumbered decliners by a 1.53-to-1 ratio

on the NYSE and by a 1.07-to-1 ratio on the Nasdaq.

The S&P 500 posted 19 new 52-week highs and no new lows

while the Nasdaq Composite recorded 43 new highs and 24 new

lows.

(Reporting by Johann M Cherian and Sanchayaita Roy in

Bengaluru; Editing by Devika Syamnath)