Wall Street’s main stock indexes fell on Friday, pressured by technology stocks such as Dell and Nvidia, while investors parsed inflation data showing tariffs have started feeding into prices.

Dell fell 8.4% and led declines on the S&P 500 after the personal computer maker forecast quarterly profit below estimates. The broader technology sector shed 1.7%, cooling down after rallying through the year.

Nvidia lost 3.5% and an index tracking chipmakers slid 2.8%, a day after the AI chip leader’s dour China market expectations disappointed investors accustomed to blockbuster forecasts from the company.

The spotlight was on a Commerce Department report that showed the Federal Reserve’s preferred inflation gauge, the Personal Consumption Expenditures Price Index, rose 2.6% in July as expected on an annual basis – above the central bank’s 2% target.

A measure of underlying prices suggested U.S. tariffs on imports were starting to reflect in the prices of some goods.

The U.S. tariff exemption for package imports valued under $800 also ended on Friday, raising costs for businesses and, in turn, consumers.

The in-line numbers did little to change bets that the Fed will lower interest rates by 25 basis points in September, especially following Chair Jerome Powell’s dovish comments at Jackson Hole where he acknowledged labor market weakness.

“Even if we see an uptick in inflation, which it looks like we are, the Fed may look past that, given that this is going to be tariff-related and temporary,” said Jim Smigiel, chief investment officer at SEI.

“Between now and the next Fed meeting, the employment report is going to be the most important for both policymakers and investors.”

The nonfarm payrolls report is expected next Friday.

At 12:00 p.m. ET, the Dow Jones Industrial Average fell 195.30 points, or 0.43%, to 45,441.60, the S&P 500 lost 49.14 points, or 0.76%, to 6,452.72 and the Nasdaq Composite lost 271.42 points, or 1.25%, to 21,433.74.

Fed Governor Christopher Waller, a candidate for the central bank’s top job, said on Thursday he wants to start cutting rates next month, in line with President Donald Trump’s calls to lower borrowing costs.

Rate-cut bets have put the benchmark S&P 500 and the blue-chip Dow on track for their fourth straight month of gains, while the tech-heavy Nasdaq was poised to log its fifth consecutive monthly rise.

The domestically focused Russell 2000 index has benefited the most and outperformed the main indexes in August. It slipped 0.6% on Friday.

Meanwhile, a federal judge said she would fast-track hearings in Fed Governor Lisa Cook’s effort to block Trump from firing her.

Among others, chipmaker Marvell fell 16% after forecasting quarterly revenue below expectations.

Global economy bellwether Caterpillar lost 4.5% after raising its annual estimate for tariff-related costs.

Declining issues outnumbered advancers by a 1.25-to-1 ratio on the NYSE and by a 1.78-to-1 ratio on the Nasdaq.

The S&P 500 posted 21 new 52-week highs and no new lows while the Nasdaq Composite recorded 58 new highs and 55 new lows.

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(Reporting by Johann M Cherian and Sanchayaita Roy in Bengaluru; Editing by Devika Syamnath)