Global Stocks Fall with Tech Shares as Fed Rate Cut Expected

U.S. stock markets experienced broad declines last week amid renewed inflation concerns and profit-taking, particularly in technology shares. The S&P 500 and Nasdaq fell notably, with tech giants such as Dell Technologies dropping sharply due to rising costs associated with AI-optimized servers, while Nvidia and Broadcom also saw significant losses. Inflation data from July showed the Personal Consumption Expenditures (PCE) Price Index rising modestly, with core PCE inflation steady, reinforcing expectations that the Federal Reserve is likely to cut interest rates in September and potentially again later in the year. Investor sentiment was further impacted by the stronger-than-expected drawdown in U.S. crude inventories, driving oil prices up slightly, while gold surged to its best monthly gain since April as a safe haven amid economic uncertainties. Despite short-term losses, some tech stocks like Domo Inc. remain volatile but have seen strong year-to-date gains, bolstered by strategic partnerships and analyst upgrades. Currency markets reflected these shifts, with the dollar weakening against the euro as traders priced in increased odds of Fed rate cuts.