Home / Business and Economy / Inflation Fears Loom as US Stocks Dip Ahead of Key Data Release
Inflation Fears Loom as US Stocks Dip Ahead of Key Data Release
29 Aug
Summary
- US stock futures fall ahead of July PCE inflation report
- Fed's September rate cut decision hinges on inflation data
- Tech stocks under pressure from weak earnings and economic uncertainty
On August 29, 2025, US stock futures are slightly lower as traders closely watch the upcoming release of the July Personal Consumption Expenditures (PCE) inflation report. The data is expected to show a 2.6% year-over-year rise in inflation, with core inflation (excluding food and energy) nudging up to 2.9%. This information could directly influence the Federal Reserve's policy decisions in the coming months.
The Dow, S&P 500, and Nasdaq futures have all edged lower, reflecting a cautious tone after record highs earlier this week. Markets are pricing in a high likelihood of a September interest rate cut, with an 84.2% probability of a 25-basis-point reduction. Additionally, the recent expiration of tariffs on sub-$800 imports has added another layer of uncertainty for US businesses and consumers.
Weak earnings from tech stocks and traders' unwillingness to carry heavy risk into the long weekend have contributed to the market's pause. Investors are now reassessing whether September will bring the Fed's long-anticipated rate cut. The PCE inflation data release will be a crucial factor in determining the central bank's next move.
