Home / Business and Economy / Tech Selloff Leads Market Decline as Dell's AI Costs Disappoint
Tech Selloff Leads Market Decline as Dell's AI Costs Disappoint
30 Aug
Summary
- Tech shares, including Dell, fall due to high AI server costs
- U.S. inflation data aligns with expectations, boosting hopes for Fed rate cuts
- Investors await U.S. jobs data and monitor Fed Governor's job security
On Friday, August 30th, 2025, major stock indexes experienced a decline, with the technology sector leading the way. This was largely driven by a selloff in shares of Dell Technologies, which reported high manufacturing costs for its artificial intelligence-optimized servers the previous day.
The tech selloff also impacted other AI-related companies, such as Nvidia and Broadcom, which saw their shares fall by 3.3% and 3.6%, respectively. The Nasdaq Composite fell more than 1%, while the S&P 500 technology index declined by 1.6%.
However, the news was not all bad. The U.S. Commerce Department's data on personal consumption expenditures (PCE) inflation aligned with expectations, rising 0.2% in July. This kept alive the expectations of a September interest rate cut by the Federal Reserve, which traders are now pricing in at an 89% likelihood. The news also influenced currency and treasury markets, with the dollar weakening against the euro.
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Investors are now eagerly awaiting the release of U.S. jobs data for August, which is due next Friday. They are also closely monitoring developments regarding the job security of a Federal Reserve Governor, as a federal judge has agreed to set an expedited briefing schedule in the Governor's bid to temporarily block their removal.
