U.S. equity markets declined as traders prepared to enter the extended Labor Day weekend, reflecting a cautious stance amid a slew of economic reports due this week. Key sectors such as technology and consumer discretionary saw notable sell-offs, with investors digesting mixed signals about the strength of the economy and inflationary pressures. Market participants remain focused on upcoming data releases-including jobless claims and manufacturing indices-seeking clarity on the Federal Reserve’s potential moves in the months ahead.

Despite the pullback on Friday, the broader market managed to close the month with solid gains, supported by strong corporate earnings and signs of resilience in consumer spending. Highlights from the month include:

  • S&P 500: Rose nearly 2%, driven by robust tech stock performance
  • NASDAQ Composite: Gained 3.2%, buoyed by semiconductor and software sectors
  • Dow Jones Industrial Average: Slightly up by 0.5%, weighed down by…