S&P 500 Gains & Losses Today: Dell, Ulta Shares Drop; Autodesk Stock Soars

U.S. equities, including the S&P 500, retreated from record levels on Friday, August 29, 2025, following an uptick in July's core Personal Consumption Expenditures (PCE) inflation, a key Federal Reserve gauge. This macro concern impacted market sentiment, leading to significant stock-specific moves; Dell Technologies shares tumbled 8.9% after lowering its third-quarter outlook despite beating second-quarter estimates, and Ulta Beauty declined 7.1% amid tariff uncertainty. Conversely, Autodesk surged 9.1% to be the S&P 500's top performer, driven by strong AI-related demand that helped it exceed forecasts and lift full-year guidance, highlighting that specific AI tailwinds can still buck broader market and sector pressures even as the wider AI rally showed signs of fatigue.

Analysis

U.S. equity markets retreated from record highs, with the S&P 500 falling 0.6% and the Nasdaq declining 1.2%, primarily driven by a month-over-month uptick in the July core Personal Consumption Expenditures (PCE) report. This key inflation gauge has renewed investor caution regarding the Federal Reserve's policy path. The market displayed significant divergence at the stock level, particularly within the technology sector. Dell Technologies (DELL) emerged as the S&P 500's largest decliner, falling 8.9% after its third-quarter earnings guidance came in below consensus, overshadowing a second-quarter sales and profit beat fueled by AI demand. This highlights the market's intense focus on forward-looking statements over past performance. In stark contrast, Autodesk (ADSK) surged 9.1%, becoming the index's top performer, by exceeding quarterly estimates and raising its full-year forecast on strong demand for its design software for AI data centers. This performance indicates that specific, proven AI beneficiaries can defy broader sector weakness, even as the generalized AI rally shows signs of fatigue with Oracle (ORCL) and Super Micro Computer (SMCI) falling 5.9% and 5.5%, respectively. Elsewhere, external risks weighed heavily, as seen with Ulta Beauty (ULTA) which dropped 7.1% due to uncertainty around potential tariffs, despite posting strong Q2 results and raising its full-year revenue guidance.

Key Decisions for Investors

• Given the market's negative reaction to the PCE data, investors should brace for continued volatility and exercise caution with rate-sensitive assets, as inflation concerns may persist.
• The sharp divergence between Autodesk's surge and declines in Dell, Oracle, and Super Micro suggests the AI trade is maturing; prioritize companies that can demonstrate tangible profit growth and provide strong forward guidance directly attributable to AI, rather than making broad thematic bets.
• The significant stock declines for Dell (DELL) on weak guidance and Ulta (ULTA) on tariff uncertainty, despite strong current earnings, underscore the critical importance of forward-looking commentary; closely scrutinize corporate guidance and exposure to geopolitical risks in upcoming earnings reports.
• Consider that companies like J.M. Smucker (SJM) are signaling price hikes to offset tariff costs, a strategy that could protect margins but risk impacting consumer demand, warranting a closer look at pricing power across consumer-facing portfolios.