U.S. stocks close lower following new inflation data

U.S. stocks closed lower on Friday as fresh inflation data highlighted that rising prices remain a concern heading into the new month.

The Dow Jones Industrial Average dropped 92.02 points, or 0.2 percent, to 45,544.88. The S and P 500 declined 41.6 points, or 0.64 percent, to 6,460.26. The Nasdaq Composite Index fell 249.61 points, or 1.15 percent, to 21,455.55.

Six of the 11 major S and P 500 sectors finished in positive territory. Health led the gainers with a 0.73 percent increase, followed by consumer staples, which rose 0.64 percent. Technology and consumer discretionary were the worst performers, slipping 1.63 percent and 1.14 percent, respectively.

The U.S. Commerce Department reported that the core personal consumption expenditures (PCE) price index, which excludes food and energy, rose at a 2.9 percent seasonally adjusted annual rate in July. On a monthly basis, the core PCE climbed 0.3 percent, matching economists' expectations.

"The Fed opened the door to rate cuts, but the size of that opening is going to depend on whether labor-market weakness continues to look like a bigger risk than rising inflation," said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. "Today's in-line PCE Price Index will keep the focus on the jobs market. For now, the odds still favor a September cut."

Meanwhile, the U.S. Consumer Sentiment Index, released by the University of Michigan (UM) Surveys of Consumers, fell to 58.2 in August, down from 61.7 in July and well below last August's 67.9. The Current Economic Conditions Index dropped to 61.7 from 68.0, and the Index of Consumer Expectations declined to 55.9 from 57.7, both showing weakening consumer confidence.

"Although consumers no longer fear the catastrophic scenarios they anticipated in the wake of the April tariff announcements, they believe that the current trade environment continues to pose threats to the multiple facets of the economy," said economist Joanne Hsu, director of the UM's Surveys of Consumers.

U.S. stocks close lower following new inflation data

Canadian Prime Minister Mark Carney arrived in Beijing on Wednesday for an official visit to China through Saturday.

This visit marks the first trip to China by a Canadian Prime Minister in eight years.

When briefing on the visit of Carney, a Chinese foreign ministry spokesperson said President Xi Jinping will meet with the Canadian prime minister to provide new strategic guidance for further improving and developing China-Canada relations.

Chinese Premier Li Qiang and Chairman of China's National People's Congress Standing Committee Zhao Leji will hold separate talks and meetings with the Canadian prime minister to conduct comprehensive and in-depth exchanges on bilateral relations as well as issues of mutual interest.

The spokesperson said China looks forward to taking this visit as an opportunity to enhance dialogue and communication, increase political mutual trust, expand practical cooperation, properly manage differences, address each other's concerns and consolidate the momentum of improvement in China-Canada relations to bring greater benefit for the two peoples.

Canadian PM arrives in Beijing for official visit