**Title:**
Stocks Show Mixed Performance as Inflation Data Reinforces Rate Cut Expectations

Stocks ended Friday with varied outcomes as investors took in recent inflation data, supporting the notion that the Federal Reserve will maintain its trajectory of cutting interest rates. Leading to a broad selloff among chipmakers, shares in AI favorite Nvidia fell sharply.

The Dow Jones Industrial Average climbed 0.3%, closing at a record high. In contrast, the S&P 500 slightly dipped by 0.1%, and the Nasdaq Composite saw a 0.4% decline, snapping its four-day winning streak. This mixed performance came after significant gains on Thursday, driven by a rally in chip stocks and companies benefiting from China's recently announced economic stimulus measures.

The U.S. stock market has recovered from early September losses, buoyed by optimism that economic conditions will enhance and that the Federal Reserve will continue to reduce interest rates. This sentiment was reinforced by last week's cut in the fed funds rate – the first in four years. Consequently, major stock indexes are on track to end the month higher.

Further encouraging news came from the Personal Consumption Expenditures (PCE) index. The index, preferred by the Fed for measuring inflation, showed annual inflation dropping to 2.2% in August from 2.5% in the prior month. This figure is lower than economists' expectations and approaches the Fed's 2% target, making additional rate cuts more probable. Fed Chair Jerome Powell is expected to deliver a closely watched speech on Monday.

Nvidia's shares fell 2.1% on Friday, matching broad declines in other major chip stocks such as Marvell Technology, Broadcom, and KLA Corp. The technology sector showed a mixed bag of outcomes; Apple and Alphabet managed gains, while Microsoft, Meta Platforms, and Amazon recorded losses.

In economic news related to China, U.S.-traded shares of Chinese companies saw continued gains, with the iShares MSCI China ETF rising 1.8% on Friday and 20% for the week. This surge is credited to China's new economic stimulus measures. Notable gainers included Alibaba Group Holding, PDD Holdings, and JD.com.

Among other stocks, Bristol-Myers Squibb rose 1.6% following FDA approval of a new schizophrenia drug, while Costco dipped 1.8% after reporting earnings below expectations. In commodities, gold futures dropped 1% to around $2,670 an ounce, and oil futures climbed by about 1%. Bitcoin saw a 1% rise, reaching near $66,000.

Significant movements were also seen in the S&P 500. Dell Technologies fell 5%, while HP dropped 3.9% following a downgrade by Bank of America. Conversely, Wynn Resorts and Las Vegas Sands benefited from China's economic stimulus, climbing 7.2% and 5.6%, respectively. APA Corp. also posted a 6% gain after announcing an extension of its AI partnership with Palantir Technologies.

Generac Holdings saw its shares increase by nearly 2% on Friday, driven by the impact of Hurricane Helene, which left over 4 million homes and businesses without power. The hurricane's landfall boosted demand for Generac's emergency power solutions, leading to a nearly 10% climb in its shares this week.

As China's stimulus measures continue to create optimism, casino stocks like Wynn Resorts, Las Vegas Sands, and MGM Resorts International have experienced notable gains. This has helped Wynn and Las Vegas Sands move into positive territory for the year, though MGM remains down 11%.

The iShares MSCI China ETF displayed strong performance this week, influenced by Beijing's stimulus announcements aimed at reviving economic growth. Investors should watch critical levels on the ETF's chart as it continues to show positive momentum.