New York —

Stocks were lower on Friday as investors digested inflation data that matched expectations and looked ahead to the Labor Day weekend.

The Dow fell 65 points, or 0.14%. The broader S&P 500 ticked down by 0.2% and the tech-heavy Nasdaq Composite slid 0.37%.

The major indexes pulled back slightly after notching three consecutive days of gains. The Dow and S&P 500 on Thursday hit record highs.

Stock were lower Friday morning as data showed the Personal Consumption Expenditures index rose 2.6% year-over-year in July, in line with expectations.

The Federal Reserve’s preferred inflation gauge — a core measure of PCE that strips out volatile food and energy prices — rose 2.9% year-over-year in July. It’s the hottest annual pace since February but was also in line with expectati

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