U.S. indexes were down 0.76% on Friday after briefly hitting new record highs amid a soft inflation report.

According to data released for May, the personal consumption expenditure (PCE) price index, the Fed's preferred indicator, hit a three-year low. Meanwhile, both the core and overall indexes fell to a 2.6% annualized rate. Personal spending rose from the previous month, showing a recovery from a weak April, Business Insider reports.

"The soft inflation data supports the case for a possible Fed rate cut in the coming months," the portal reports a comment from Jeffrey Roach, chief economist at LPL Financial. This week, according to him, investors' attention will be focused on the statistics on the number of jobs in non-farm industries.

Investors still expect a rate cut this year. The stock market ended the first half of the year optimistic, with the S&P 500 index up 14.1% and the Nasdaq up 16.6%.