The 30-stock index changed direction and unloaded 168.33 points to end August at 34,721.91.
The S&P 500 index dropped 7.21 points to 4,507.66.
The tech-heavy NASDAQ surpassed breakeven 15.66 points to 14,034.97.
All three benchmarks are down more than 1% month to date, but have trended higher in recent days as traders signal a late August rally.
Salesforce mitigated some of the Dow’s losses. Shares advanced more than 3.2% after the software company announced fiscal second-quarter results and third-quarter guidance Wednesday that exceeded analysts’ expectations.
Traders on Thursday also pored over new U.S. inflation data. The core personal consumption expenditures index increased 0.2% month-over-month in July and 4.2% year over year, matching estimates from economists polled by Dow Jones. The core PCE is a closely watched inflation indicator by the Federal Reserve.
Investors will now turn their attention to non-farm payroll data due out Friday morning. Economists polled by Dow Jones forecast 170,000 additions. Traders are holding onto hope that the report will indicate that the economy is slowing meaningfully, and ultimately give the central bank reason to pause benchmark interest rate hikes.
Prices for the 10-year Treasury gained, lowering yields to 4.10% from Wednesday’s 4.12%. Treasury prices and yields move in opposite directions.
Oil prices climbed $1.92 to $83.55 U.S. a barrel.
Gold prices slid $6.20 to $1,966.80 U.S. an ounce.