Stocks were mixed on Thursday as Wall Street notched a month of losses. The Dow Jones Industrial Average lost nearly 170 points, while the S&P 500 fell 0.16% and the Nasdaq Composite added 0.11%. All three major averages ended August more than 1.5% lower, with the Nasdaq posting its worst month so far in 2023.

Here's how the market settled on Thursday:

S&P 500 Index (SPY  ): -0.16% or -7.22 points to 4,507.65

Dow Jones Industrial Average (DIA  ): -0.49% or -169.25 points to 34,720.99

Nasdaq Composite Index (QQQ  ): +0.11% or +15.66 points to 14,034.97

In the spotlight, the Personal Consumption Expenditures (PCE) Index came in-line with expectations on both a headline and "core" basis, the Commerce Department reported Thursday, boosting market optimism that the Federal Reserve will pause its interest rate campaign at its upcoming September meeting.

Headline PCE rose 3.3% on an annual basis, up from 3% in June, while core PCE -- excluding the cost of food and energy -- climbed 4.2% year-over-year compared to 4.1% last month; both in-line will Wall Street expectations, providing another sign inflation is cooling in response to the central bank's hawkish monetary policy. Month-to-month, headline and core PCE rose by 0.2%, matching June's pace.

Traders are currently pricing in a roughly 89% chance the central bank will maintain its benchmark interest rate at a range of 5.25% to 5.50% at its next meeting, according to CME Group's FedWatch tool. Last week, Fed Chair Jerome Powell said at the central bank's Jackson Hole Symposium that policymakers were expecting a hot inflation reading for July, so the month's in-line report helped boost rate-pause sentiment.

In other economic news, initial jobless claims totaled 228,000 for the week ended August 26, the Labor Department reported Thursday, a decrease of 4,000 from the previous week's revised print and below Wall Street expectations. The report comes ahead of Friday's "official" jobs report for August, which is expected to total 170,000 additions as the U.S. labor market continues to show signs of cooling.

On the earnings front, Salesforce (CRM  ) shares rose after the software company reported strong second-quarter earnings and revenue. The company cited growth in all five of its product categories, with CEO Marc Benioff forecasting further expansion with artificial intelligence. For the current quarter, Salesforce expects adjusted earnings per share in the range of $2.05 to $2.06 on revenue of $8.7 billion to $8.72 billion.

Okta (OKTA  ) shares jumped more than 12% as the identity and access management company posted better-than-expected second quarter results and issued a strong outlook for the third quarter and full year. CrowdStrike (CRWD  ) shares also rose following the cybersecurity company's second-quarter results that topped expectations on top and bottom lines.

In stock news, cannabis stocks including Canopy Growth (CGC  ) and Tilray Brands (TLRY  ) jumped higher on Thursday after the U.S. Department of Health and Human Services recommended reclassify marijuana as a lower-risk drug, according to multiple reports. While reclassification to a Schedule III under the Controlled Substances Act is short of legalizing the drug's use entirely, it would be a significant shift away from grouping cannabis in the same category as other Schedule I substances like heroin and LSD.

Apple (AAPL  ) is reportedly testing the use of 3D printers to make stainless steel chassis for its upcoming Apple Watch 9, according to Bloomberg News, citing people familiar with the matter. If the testing goes well, Bloomberg reported, Apple plans to integrate the technology into the manufacturing process for more products in the future.

Shopify (SHOP  ) shares jumped more than 10% after the e-commerce company announced a deal to offer Amazon's (AMZN  ) "Buy with Prime" checkout to merchants. The service allows merchants to add the Amazon Prime logo and offer Amazon's delivery options on their storefronts, as well as providing access to Prime's loyalty credits for shoppers when they check out using their Amazon accounts.

For Friday, investors will turn their attention to Friday morning's non-farm payroll data release as Wall Street heads towards an extended holiday weekend.