Stock market today: Stocks are down slightly on Wall Street, ending a three-week streak of gains for the S&P 500

Wall Street stocks gave up early gains and ended lower Friday, ending a three-week winning streak for the S&P500.

A flurry of selling late in the day left the benchmark index down 0.4% and in the red for the week. The Nasdaq Composite Index fell 0.7%, while the Dow Jones Industrial Average finished down 0.1%.

Despite the pessimistic finale, the S&The P 500 and the Nasdaq remain close to their historical highs.

The decline in big technology stocks, which were the big winners in the market's record rally, weighed on the market. Apple fell 1.6%, Microsoft 1.3% and Meta Platforms ended down 3%.

The late afternoon burst of selling could be because traders took profits while the market was near all-time highs, or because they rebalanced their portfolios at the end of the second quarter. quarter, said Ross Mayfield, investment strategy analyst at Baird.

“It wouldn't surprise me at all if there was some profit taking today, especially on stocks that have really moved up,” Mayfield said. This may be why we are seeing some additional weakness from big tech relative to the rest of the market.

The market headed higher early on a closely watched report that showed inflation continues to fallInvestors 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.

According to the latest Personal Consumption Expenditure (PCE) index, consumer prices rose 2.6% in May from a year earlier. This figure marks a continued decline from the 2.7% level recorded in April and is significantly lower than the peak of 7.1% recorded 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.

The PCE is the Fed’s preferred gauge of inflation, and the latest numbers are encouraging for economists and investors hoping the rate cuts will 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 rose in the bond market after initially losing ground on 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 4.38% from 4.30% just before the PCE data was released. The yield on the two-year Treasury note, which more closely tracks expectations for Fed action, rose to 4.74% from 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 are still feeling the pressure of inflation, despite the significant slowdown from its peak, and recent data have shown that spending is weakening and weighing on economic growth. The Fed's goal was to slow economic growth enough to curb inflation, but not so much that the economy falls into a recession.

This combination of falling inflation and consumers becoming more cautious about their spending habits has the market pricing in 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 receive updates next week on job openings, unemployment and hiring.

Nike fell 20%, the biggest drop among S&P 500 shares after the athletic footwear and apparel company missed Wall Street revenue targets and cut its full-year sales forecast. Company executives said they expected a single-digit sales decline in the current fiscal year, citing a challenging environment.

Nike's gloomy outlook has dragged other sportswear brands down with it. Foot Locker fell 2.4%, Skechers lost 1% and Under Armor fell 2.6%.

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

Gains in financial sector stocks helped limit the decline in the S&P 500. JPMorgan Chase rose 1.6% and Wells Fargo closed up 3.4%.

THE&The P 500 closed its last trading day of June with a gain of 3.5% for the month. The index is up about 14.5% year-to-date.

The Nasdaq gained about 6% for the month and is up 18.1% this year.

All in all, the S&The P 500 index lost 22.39 points to 5,460.48 points. The Dow Jones lost 45.20 points to 39,118.86 points. The Nasdaq lost 126.08 points to close at 17,732.60 points.

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