CNBC Business News Update - Market Midday: Stocks Lower, Inflation Higher, Markets On Pace For A Winning August 8/29/25

Episode Date: August 29, 2025

From Wall Street to Main Street, the latest on the markets and what it means for your money. Updated regularly on weekdays, featuring CNBC expert analysis and sound from top business newsmakers. Anchored by CNBC's Jessica Ettinger.

I'm Jessica at Inger, CNBC. Wall Street in the Red this afternoon as we wrap up August trading today. Stocks are coming off record highs for the major averages, but they're lower on more higher inflation data out. The Dow, down 166 points. It's being led lower by shares of Caterpillar, which are down 4.5% this afternoon. Cat warning, it's going to have to raise prices because of the Trump tariffs. The S&P 500 index down 46 points, three quarters percent. The NASDAQ down 269 points. That's one and a quarter percent.

InVIDIA shares are down three and a half percent this afternoon. The major averages all on pace for a losing week, but still on pace for a winning month of August. Inflation is indeed rising. Now back up to almost 3 percent. Moving even farther away from the Fed's target of 2 percent inflation. Corp.C.E. year over year comes in at 2.9, warmer than it was last month. CNBC's Rick Santelli inflation for July hitting its highest since February now in the PCE report

on personal consumption expenditures. Consumers spending increased a half of a percent for July. That's in line with forecasts and still seen as somewhat strong, considering American consumers are facing higher prices. As the U.S. consumer makes up about two-thirds of U.S. economic growth, Some say the markets will panic if the consumer really stops spending. In this time period, when we have tariffs boosting prices, we don't know if the gains are real spending or are they boosted by inflation. This number is inflation adjusted. So at the extent that we have real PCE up zero three, the price index up zero two, we understand what's going on. And the consumer seems to be on an inflation adjusted basis, assuming that number is correct, doing okay.

CNBC Senior Economics reporter Steve Leesman. Wall Street paying attention to these rising prices. The Wall Street Journal headline says it all. Higher prices are coming for household staples. Page 1 of the journal today talking about the company's warning of price hikes. We're still working off of pre-tariff inventory in most of the country and most products. So as that starts to fade and as companies I think we're just sort of hunkering down, taking a margin hit, hoping, okay, this is going to be short term, this is going to be resolved.

But at some point, as that inventory bleeds off and as they have to get some margin, the prices are going to have to go up. CNBC's Robert Frank with Carl Kintanilla. Some retail panic today as the de minimis rule for tariff ends. The exemption allowed shipments valued under $800 to enter the U.S. tariff-free. But now even a cheap $10 item from overseas could double in price for American buyers. The Trump administration has wiped out the exemption. Small business owners on Etsy, eBay, and Shopify are worried they relied on that provision to support their marketplace businesses. American Eagle Outfitters, moving on from the Sydney-Sweeney controversy.

It's now using NFL star and Taylor Swift fiancé Travis Kelsey as a celebrity partner marketing its cricket sweaters, beanies, and utility cargo pants, according to Morning Brew. McDonald's with pumpkin spice lattes today on menus, pumpkin and cream pies also available. new in theaters for the long Labor Day holiday weekend. Sony's caught stealing, Iconics The Toxic Avenger, plus in select theaters for its 50th anniversary, Jaws. Jessica Eddinger, CNBC.

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