Stocks pull back from their latest all-time highs on Wall Street

Stocks lost ground on Wall Street a day after the market hit its latest all-time highs. The S&P 500 fell 0.6% Friday. The index ended August up 1.9%, its fourth straight month of gains. The Dow Jones Industrial Average fell 92 points, or 0.2%. The Nasdaq composite fell 1.2%.

Treasury yields were mixed in the bond market. The government said prices mostly held steady last month. European markets were mostly lower and Asian markets closed mixed. U.S. markets will be closed on Monday for the Labor Day holiday.

THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below.

Stocks are losing ground on Wall Street in afternoon trading Friday, pulling the market down from its latest all-time highs, after a closely watched measure of inflation showed prices mostly held steady last month.

The S&P 500 was down 0.7% a day after climbing to a record high. The benchmark index is set to end August up roughly 1.9%, which would be its fourth straight month of gains.

The Dow Jones Industrial Average also came off its own record high, shedding 111 points, or 0.3%, as of 2:39 p.m. Eastern time. The Nasdaq composite was 1.2% lower.

Losses in technology weighed on the market, offsetting gains in health care and other sectors.

Dell Technologies slid 9.3% for the biggest decline among S&P 500 stocks a day after the company reported second-quarter revenue that exceeded analysts’ expectations, but noted that margin pressures and weakness in PC revenue.

Among other tech companies in the red: Tech giant Nvidia fell 3.4%, Broadcom dropped 4.3% and Oracle was 6.3% lower.

The Commerce Department said prices rose 2.6% in July compared with a year ago, as measured by the personal consumption expenditures index. That's the same annual increase as in June and in line with what economists expected.

Still, excluding the volatile food and energy categories, prices rose 2.9% last month from a year earlier, up from 2.8% in June and the highest since February.

While inflation is much lower than the roughly 7% peak it reached three years ago, it is still running noticeably above the Fed's 2% target.

Still, Federal Reserve Chair Jerome Powell signaled last week that the central bank may cut its key interest rate at its meeting next month, amid signs of sluggishness in the job market.

The most recent government data suggests hiring has slowed sharply since this spring.

"Today's in-line PCE Price Index will keep the focus on the jobs market," said Ellen Zentner, chief economic strategist for Morgan Stanley Wealth Management. "For now, the odds still favor a September cut."

Lower rates can boost investment prices and the economy by making it cheaper for U.S. households and businesses to borrow, but they risk worsening inflation.

Traders see a roughly 87% chance that the central bank will cut its benchmark interest rate next month by a quarter of a percentage point, according to data from CME Group.

Meanwhile, the latest reading in a survey of U.S. consumers by the University of Michigan showed sentiment soured this month. The final August reading is the lowest since May, reflecting heightened concerns about prices and the economy.

Treasury yields were mixed in the bond market. The yield on the 10-year Treasury rose to 4.22% from 4.21% late Wednesday. The yield on the two-year Treasury, which more closely tracks expectations for Federal Reserve action, slipped to 3.62% from 3.63%.

The Fed will get to review two more important inflation barometers before its next policy meeting, the producer price index and consumer price index. Unless those reports show a huge spike in inflation, the Fed is "almost guaranteed" to cut interest rates next month, said Chris Zaccarelli, chief investment officer for Northlight Asset Management.

Also weighing on the market Friday were Ulta Beauty and Marvell Technology.

Ulta fell 6.7% despite posting second-quarter earnings and revenue that topped analysts’ estimates, while Marvell slid 18.3% after its third-quarter guidance fell short of what Wall Street was expecting.

Among the stocks bucking the broader market slide were Petco Health & Wellness and Autodesk. Both companies were coming off better-than-expected quarterly results. Petco jumped 22.6% and Autodesk climbed 8.3%.

European markets were mostly lower and Asian markets closed mixed.

U.S. markets will be closed on Monday for the Labor Day holiday.