Major stock indexes fell on Friday, led by technology shares like Dell Technologies, which dropped 8.9% due to high manufacturing costs for AI-optimized servers. Other AI-related shares like Nvidia and Broadcom also fell. The Nasdaq and S&P 500 technology index both saw declines.

U.S. inflation data showed the Personal Consumption Expenditures Price Index rose 0.2% in July, with a 2.6% increase in the 12 months through July. The core PCE Price Index increased 0.3% last month, leading to expectations of a September interest rate cut by the Federal Reserve.

Traders are pricing in an 89% chance of a rate cut in September, up from 84% before the data release. The dollar weakened against the euro, and major U.S. stock indexes like the Dow, S&P 500, and Nasdaq all fell. European shares also closed lower.

Longer-dated Treasury yields edged higher as traders closed positions ahead of the long weekend. Fed Governor Christopher Waller expressed a desire to start cutting interest rates next month. Investors are awaiting U.S. jobs data for August and following news on President Donald Trump’s attempt to fire Fed Governor Lisa Cook.

Oil prices declined, with U.S. crude settling at $64.01 a barrel and Brent settling at $68.12. Spot gold rose to $3,446.75 an ounce. Financial markets will be closed for the Labor Day holiday on Monday.

Read more at Yahoo Finance: Stocks decline with tech shares; dollar weakens as Fed rate cut in view