Closing Bell: Stocks Retreat as NVIDIA, Amazon Slid, Wall Street Weighs Inflation Concerns

### Closing Bell Commentary: Stocks Retreat as NVIDIA, Amazon slid, Wall Street Weighs Inflation Concerns

**Note**: This analysis is generated after US market close. Event times in US Eastern Time.

As the closing bell rang today, U.S. markets faced a modest retreat, with the S&P 500 down 0.64%, the Dow Jones slipping 0.20%, and the Nasdaq 100 leading the decline with a 1.22% drop. This pullback comes after a strong August, where the S&P 500 managed to secure its fourth consecutive month of gains, buoyed by solid earnings from tech giants like Nvidia. However, profit-taking ahead of the long weekend and concerns over persistent inflation weighed heavily on investor sentiment.

The Personal Consumption Expenditures (PCE) report released today reflected core inflation rising to 2.9%, the highest since February, contributing to unease among traders. In Europe, Germany’s inflation exceeding expectations alongside a rise in unemployment added to the negative sentiment, with the DAX down 0.57% and the CAC 40 declining 0.76%. Denmark also revised its growth forecast downwards, indicating broader economic challenges.

In the currency markets, the euro gained slightly against the dollar, trading at 1.1688, while the yen weakened marginally to 147.03 per dollar. Gold prices, however, saw a notable increase of 2.48%, reflecting a flight to safety amid economic uncertainties.

Sector-specific news also influenced market dynamics, with Spirit Airlines filing for Chapter 11 bankruptcy protection for the second time this year, raising questions about the resilience of the airline industry. Meanwhile, Meta’s ongoing scrutiny over its AI chatbot policies sparked concerns about regulatory pressures on tech companies.

Overall, while August concluded on a high note, today’s market performance illustrates the cautious sentiment as investors navigate inflationary pressures and geopolitical uncertainties. The momentum from previous months seems to be tempered as Wall Street gears up for September.

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### FX and Commodities

## Today’s Major Economic Events Summary

On August 29, 2025, key economic data influenced market sentiment and currency valuations. Notably, Sweden’s GDP growth outpaced expectations with a year-on-year increase of 1.4% (forecast: 0.9%) and a quarterly rise of 0.5% (forecast: 0.1%), supporting the SEK. In contrast, German retail sales fell sharply by 1.5% in July (forecast: 0.0%), reflecting consumer weakness and potentially impacting the EUR negatively. French economic indicators were mixed, with consumer spending matching forecasts at -0.3%, while CPI slightly underperformed at 0.4% (forecast: 0.5%). The U.S. Core PCE Price Index met expectations, but a significant goods trade deficit of $103.6 billion (forecast: $90.2 billion) raised concerns. The Chicago PMI fell to 41.5, indicating contraction, which may weigh on the USD. Overall, these