Stock Market Today: Stocks fall on Wall Street, ending three-week winning streak for the S&P 500

Stocks fell on Wall Street, erasing the S&P 500's gains for the week. The S&P 500 slipped 0.4% Friday but remained close to the record set last week. The Nasdaq Composite fell 0.7% and the Dow Jones Industrial Average declined 0.1%. Nike fell 20% after the athletic shoe and apparel maker missed Wall Street's revenue targets and cut its full-year sales forecast. Company executives said they expected sales to decline by single digits in the current fiscal year, citing a tough environment. Treasury yields were mixed in the bond market after a closely watched report showed inflation continues to ease.

THIS IS BREAKING NEWS. The previous AP article follows below.

Stocks on Wall Street gave up early gains and fell slightly in afternoon trading Friday, after a closely watched report showed inflation continuing to fall.

Investors are hoping that slowing inflation will prompt the Federal Reserve to start cutting interest rates, which remain at their highest level in more than 20 years.

The S&P 500 index was down 0.3%, hovering around its all-time high. The benchmark remains within striking distance of a fourth straight weekly gain. The Nasdaq Composite Index fell 0.3% and hovers around its all-time high.

The Dow Jones Industrial Average was down 152 points, or 0.4%, as of 3:15 p.m. Eastern time.

Consumer prices rose 2.6% in May from a year ago, according to the latest index of personal consumption expenditures, or PCE. That's a continuation of the easing from April's 2.7% reading and is well below the 7.1% peak two years ago.

This is a step in the right direction and is what the Fed needs to make the decision to cut rates, said Quincy Krosby, chief global strategist at LPL Financial.

PCE is the Fed’s preferred measure of inflation, and the latest data is encouraging for economists and investors hoping for rate cuts to help ease pressure on the market and borrowers. Wall Street is betting the Fed will start cutting interest rates at its September meeting.

Treasury yields were mixed in the bond market after initially losing ground following the latest signal of slowing inflation. The yield on the 10-year Treasury note, which influences interest rates on mortgages and other consumer loans, rose to 4.35% from 4.30% just before the PCE data was released. The yield on the two-year Treasury note, which more closely tracks expectations for the Fed's actions, held steady at 4.72% just before the data was released.

The Fed raised interest rates to their highest level in more than two decades in an effort to bring inflation back to its 2% target. Other measures of inflation, including the popular consumer price index, also confirmed that price pressure has eased.

Consumers continue to feel pressure from inflation, despite a significant decline from its peak, and recent data shows that spending is weakening and weighing on economic growth. The Fed's goal was to slow economic growth enough to calm inflation, but not so much that it slides the economy into recession.

This combination of lower inflation and more cautious consumers in their spending habits allows the market to see the possibility of a rate cut in September, Krosby said.

The strength of the jobs market has been another important factor in economic growth, but it has also shown signs of weakening. Wall Street will be informed next week about job openings, unemployment and hiring.

Nike fell 20.7%, the biggest decline among S&P 500 stocks, after the athletic footwear and apparel company missed Wall Street revenue targets and cut its full-year sales forecast. Company executives said they expected sales to decline mid-single digits in the current fiscal year, citing a challenging environment.

Nike's dour outlook has dragged other sportswear companies down with it. Foot Locker fell 3.5%, Skechers fell 1.2% and Under Armor fell 3.1%.

More retailers, particularly those focused on non-essential items, are warning of a slowdown in consumer spending. Consumers barely increased their spending in May compared to April, according to the government's latest retail sales report.

Gains in technology and financial stocks helped limit the decline in the S&P 500. Salesforce rose 2% and JPMorgan Chase rose 1.3%.

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AP Business writers Yuri Kageyama and Matt Ott contributed to this report.