By William Collins, consultant in financial affairs – Eurasia Business News, August 29, 2025. Article no. 1751
U.S. stock futures indicated a lower open today, with the Dow Jones Industrial Average futures down around 0.3% after reaching record highs the previous day. Tech stocks led the decline, with Nvidia and Palantir among those sliding ahead of important inflation data release.
The U.S. market’s cautious stance this morning is largely due to investor anticipation of U.S. July inflation figures from the Federal Reserve’s preferred gauge, the Personal Consumption Expenditures (PCE) index. This data is expected to impact expectations for future interest rate cuts by the Fed, with a high probability of a rate reduction at the September meeting.
Later in the morning, it was released that the U.S. Federal Reserve preferred inflation measure moved no closer to its 2% target in July, emphasizing the policy challenge the Fed faces as it prepares for a possible interest-rate cut in September. The personal-consumption expenditures price index rose by 2.6% over the 12 months through July, steady from a month earlier, according to the Commerce Department’s Bureau of Economic Analysis.
Excluding the volatile food and energy categories, the closely watched core PCE price index was up by 2.9% year over year in July, up from 2.8% in June.
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The stock market immediately reacted. Following the release, the Dow Jones increased by about 200 points, the Nasdaq rose by 120 points, and the S&P 500 gained 43 points, reflecting a positive initial market reaction. Bond yields dropped slightly, with the two-year Treasury yield falling by 3 basis points to 3.716%. Market participants interpreted the data as giving the Federal Reserve room to proceed with a likely interest rate cut in September, pricing in about a 90% chance of such a move. However, some caution remained due to stickier core inflation and rising real wages, which could complicate the Fed’s path to its 2% inflation target.
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Nvidia’s shares slipped slightly following its earnings report that, although showing strong AI-related revenue growth, fell short of the lofty sales projections for China due to trade uncertainties. Palantir also saw a dip in share price during this cautious trading day. The broader market is digesting a mixed bag of earnings and economic indicators, with renewed volatility as traders await the official inflation report. Despite the pullback on August 29, major indexes like the Dow and S&P 500 had achieved record highs recently fueled by optimism around AI investments and strong quarterly earnings by key tech companies.
Gold futures were priced this morning around $3,476.80 per ounce, showing a slight gain of about $2.50 (0.07%) from the previous close of $3,474.30. The day’s gold prices ranged between approximately $3,463 and $3,480 per ounce. Over the last month, gold prices have risen by over 4%, and year-over-year, gold is up by more than 36%, reflecting strong demand as a safe-haven asset amid economic uncertainty.
Silver futures traded at about $39.63 per ounce this morning, gaining approximately $0.44 (1.11%). Silver’s daily price fluctuated between around $38.90 and $39.68. Like gold, silver has seen a notable price increase over the past month and year, with investors often turning to these precious metals in times of market volatility and inflation concerns.
Both metals have shown strong performance recently, with gold up over 36% year-over-year and silver also experiencing solid gains as investors sought safe havens amid economic uncertainties.
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