Investor sentiment turned sour on Friday as a key inflation metric closely monitored by the Federal Reserve surged to a five-month high, sparking uncertainty about the timing of potential interest rate cuts. The core Personal Consumption Expenditures index, the Fed's preferred inflation measure, climbed 2.9% year-over-year in July, meeting expectations but hitting a five-month peak. This data rattled markets after Fed Chair Jerome Powell hinted at possible rate reductions. By midday in New York, major stock indices were down, particularly in the technology and high-growth sectors. Riskier assets like cryptocurrencies also saw steep declines. The Nasdaq 100 dropped 1.3%, ending a three-day rally. Nvidia Corp. (NASDAQ: NVDA) took a significant 3.4% hit, contrasting with a minor 0.8% decrease the day before.