Stocks retreated on Wall Street on Friday, pulling back from their latest all-time highs, after fresh inflation data showed prices largely holding steady. The S&P 500 fell 0.5% a day after notching a record high and remains on track to end August with a nearly 2% gain, its fourth consecutive month of advances.The Dow Jones Industrial Average dropped 125 points, or 0.3%, while the tech-heavy Nasdaq composite slid 0.9% as of 9:58 a.m. Eastern time. Losses in technology shares weighed on markets, offsetting gains in health care and other sectors, AP reported.Dell Technologies tumbled 9.7%, the sharpest decline among S&P 500 stocks, despite posting second-quarter revenue above expectations. The company flagged margin pressures and weakness in PC demand. Other technology names also declined, with Nvidia falling 2.8%, Broadcom dropping 2.7% and Oracle sliding 3.6%.The Commerce Department reported that prices rose 2.6% in July from a year earlier, unchanged from June and in line with forecasts. Core prices, excluding food and energy, increased 2.9% year-on-year, slightly higher than June’s 2.8% and the fastest since February.While inflation has cooled from its 7% peak three years ago, it remains above the Federal Reserve’s 2% target. Fed Chair Jerome Powell signalled last week that a rate cut could come as early as next month, citing signs of a softening labour market.“Today’s in-line PCE Price Index will keep the focus on the jobs market,” said Ellen Zentner, chief economic strategist at Morgan Stanley Wealth Management. “For now, the odds still favor a September cut.”Traders currently assign an 87% chance of a quarter-point cut at the Fed’s next meeting, according to CME Group data. Lower rates can spur investment and borrowing but also carry the risk of stoking inflation.Bond yields edged higher, with the 10-year Treasury rising to 4.23% from 4.21%, while the 2-year yield held steady at 3.63%. European shares traded mostly lower, and Asian markets closed mixed.US markets will remain shut on Monday for the Labor Day holiday.