U.S. equity futures fell on Friday as investors weighed the latest inflation data to grasp the state of the economy. Futures tied to the Dow Jones Industrial Average slipped 102 points, or 0.4%. S&P 500 futures pulled back 0.3%, while Nasdaq 100 futures declined 0.4%. The personal consumption expenditures price index, a key inflation measure for the Federal Reserve, increased a seasonally adjusted 0.2% in July and 2.6% for the year. Excluding food and energy, core PCE posted respective readings of 0.3% and 2.9%. Both were in line with expectations. Nvidia shares extended their recent losses, falling about 1% in the premarket, after the Wall Street Journal reported that Chinese e-ecommerce giant Alibaba has created a more advanced chip as it looks to fill the gap left by Nvidia running into issues around selling its chips in China. U.S. shares of Alibaba were up more than 2%. While President Donald Trump struck a deal with Nvidia earlier this month allowing the company to restart selling its H20 chips in that country, the Chinese government has told local tech companies to halt purchases of the chips, citing alleged security concerns. Caterpillar shares also lost nearly 3% in premarket trading after the company warned it could tat a $1.5 billion-$1.8 billion hit this year due to tariffs. Shares of Dell Technologies slipped 5% following a soft outlook for the current quarter. Stocks are coming off a winning session, with the S&P 500 closing above the 6,500 mark for the first time. The Nasdaq Composite added 0.5%, while the Dow Jones Industrial Average ended Thursday up about 0.2% at a record high as well. Better-than-expected quarterly earnings from Nvidia helped solidify investor confidence in the health of the AI trade. Although Nvidia’s earnings initially sparked some concern tied its data center business and only slightly better-than-expected revenue for the current quarter, the report helped lift peer chip stocks that initially pulled back. Nvidia stock ultimately ended the day down less than 1%. “I think if someone is trying to ring the bell at the top for AI, they’re underestimating how quickly penetration grows. We’re probably in the first quarter or first third of that cycle for AI,” Fundstrat Global Advisors co-founder and head of research Tom Lee told CNBC’s “Power Lunch” on Thursday. With all three major indexes at or near record highs, the gains for the month have been solid. The 30-stock Dow is up 0.01% week to date, but it has logged a 3.4% advance in August. The S&P 500 has tallied a 0.5% increase week to date, and is up 2.6% so far this month. The tech-heavy Nasdaq added about 1% this week, which has helped boost August’s gain to 2.8%. The 10-year Treasury yield was lower on Thursday as investors looked ahead to a key inflation gauge and monitored President Donald Trump’s continued attempts to control the Federal Reserve. The benchmark 10-year Treasury yield was down more than 2 basis points to 4.209%, while the 2-year yield was up less than 2 basis points to 3.637%. Asia-Pacific markets traded mixed Friday, breaking ranks with Wall Street, with investors assessing economic data from Japan. Japan’s Nikkei 225 slid 0.26% to close at 42,718.47, while the Topix lost 0.47% to 3,075.18 after core consumer prices in Tokyo rose at a slower pace in August. The Tokyo core CPI, which strips out fresh food but includes energy, climbed 2.5% from a year earlier, matching Reuters’ economists’ forecasts, and easing from July’s 2.9% increase. The figure, however, remained above the Bank of Japan’s 2% target. South Korea’s Kospi lost 0.32% to 3,186.01 while the Kosdaq Index slipped 0.19% to 796.91 after South Korea’s ex-first lady Kim Keon Hee was reportedly indicted over corruption and bribery charges. Kim is the wife of former South Korean President Yoon Suk Yeol, who was removed from office and arrested earlier this year for his short-lived declaration of martial law. The South Korean won weakened 0.15% to 1,387.38 against the dollar.Australia’s S&P/ASX 200 was flat at 8,973.1. Hong Kong’s Hang Seng index added 0.45% to 25,110.7 while mainland’s CSI 300 rose 0.74% to close at 4,496.76. Oil prices fell on Friday, but were set for a weekly gain, tugged between uncertainty about Russian supply and expectations of lower demand as the summer driving season in the United States, the world’s biggest fuel consumer, nears its close. Brent crude futures for October delivery, which will expire on Friday, fell 36 cents, or 0.5%, at $68.26 at 0816 GMT, while the more active contract for November slid 29 cents, or 0.4%, to $67.69. West Texas Intermediate crude futures were down 28 cents, or 0.4%, at $64.32. Brent is set for a weekly gain of 0.8%, while WTI is set to climb by 1%. The market was in part shifting its focus towards next week’s OPEC+ meeting, said Tamas Varga, analyst at PVM Oil Associates. Gold prices edged lower on Friday, but were set for a monthly gain ahead of U.S. inflation data that will provide more cues on the Federal Reserve’s rate cut trajectory. Spot gold was down 0.3% at $3,407.14 per ounce. Bullion has gained 3.6% in August and hit $3,423.16 on Thursday, its highest level since July 23. U.S. gold futures for December delivery eased 0.1% to $3,471.70. “Besides the dollar’s slight advance, gold is also feeling the gravitational forces typically found around big, round numbers. Markets appear reluctant to let gold stray far from the psychological $3,400 level ahead of PCE data,” said Han Tan, chief market analyst at Nemo.Money. The dollar rose, but was set for a monthly drop of 2.2%. Benchmark 10-year yields were slightly above a two-week low hit on Thursday, but were headed for a monthly loss.