Investor sentiment waned as a key inflation measure watched by the Federal Reserve surged to a five-month high, raising uncertainty about the timing of potential interest rate cuts. The core Personal Consumption Expenditures index, the Fed’s favored inflation gauge, increased by 2.9% year-over-year in July, aligning with predictions but hitting a five-month peak. This development rattled markets, occurring shortly after Fed Chair Jerome Powell hinted at possible interest rate reductions. By midday trading in New York, major equity indicators were in the negative zone, particularly weighed down by declines in the tech sector and high-growth stocks. Speculative assets like cryptocurrencies also experienced significant declines, with the Nasdaq 100 dropping by 1.3%, breaking a three-day uptrend. Nvidia Corp. (NASDAQ: NVDA) led the declines, sliding by 3.4%.