The Dow Jones is down today primarily because investors are reacting to new inflation data indicating that prices rose above the Federal Reserve's target in July. This inflation update heightened concerns about persistent inflation and the potential for slower or delayed interest rate cuts by the Fed. Additionally, soft earnings forecasts and disappointing guidance from major companies like Dell, as well as tariff-related cost warnings from Caterpillar, have weighed on market sentiment. Tech stocks, including Nvidia, also suffered losses which added pressure on the Dow. Overall, the stock market pulled back slightly after reaching record highs earlier in the week, with investors taking some profits amid economic uncertainties and ongoing tariff concerns.
