US markets are closed on Monday for Labor Day, with stock and bond trading set to resume on Tuesday.

Government data released last Friday showed that the US Personal Consumption Expenditures (PCE) index the Federal Reserves preferred gauge of inflation rose strongly in July, while core inflation accelerated as tariffs pushed up the cost of certain goods. The PCE index rose 0.2% month-over-month and 2.6% year-over-year, both in line with expectations.

Traders increased their bets that the Federal Reserve will cut interest rates by 25 basis points at its September policy meeting, raising the probability of this scenario to about 89%, up from 85% before the data release, according to the FedWatch tool.

At Fridays close, the Dow Jones Industrial Average fell 0.2% (92 points) to 45,545, posting a 0.2% weekly loss but a 4.5% monthly gain. The index recorded a high of 45,616 and a low of 45,377.

The broader SP 500 declined 0.6% (41 points) to 6,460, logging a 0.1% weekly loss but a 3.6% monthly gain in August. It touched a high of 6,491 and a low of 6,444.

The Nasdaq dropped 1.2% (249 points) to 21,455, with a 0.2% weekly loss but a 3.9% monthly gain. The tech-heavy index reached a high of 21,631 and a low of 21,398.