Advertisement
U.S. stocks were little changed on Monday as investors took a cautious stance ahead of major economic reports that could shape the Federal Reserve’s next policy move. By midday in New York, the Dow Jones Industrial Average was down 122 points, or 0.3%, while the S&P 500 inched up just 0.04% and the Nasdaq Composite gained 0.2%.
The market’s momentum, fueled in recent weeks by strong second-quarter earnings, paused as traders looked toward Tuesday’s release of July consumer price index (CPI) data. The report is expected to show core CPI rising 0.3% month-over-month, or 3% year-over-year. Analysts say such a reading would likely give the Fed enough room to move ahead with an interest rate cut in September, especially after recent jobs data pointed to a cooling labor market.
Additional key figures are due later in the week, including producer prices on Thursday and retail sales plus consumer sentiment on Friday. The Fed has been balancing its dual mandate of maximum employment and stable prices, but inflation remains above the central bank’s 2% target. The recent tariff hikes from the Trump administration on imports from several countries are also expected to push U.S. prices higher.
Trade policy remains another source of market uncertainty. The August 12 deadline for the current tariff truce between the U.S. and China is fast approaching. While both sides have expressed optimism about extending the pause, President Donald Trump has not yet signed an agreement. He and Treasury Secretary Scott Bessent have indicated progress toward a broader deal after meetings in Stockholm.
Geopolitics is also on the radar, with Trump scheduled to meet Russian President Vladimir Putin in Alaska on August 15. The summit will be the first in-person meeting between U.S. and Russian leaders since 2021 and will focus on efforts to end the war in Ukraine.
On the corporate side, the earnings calendar was light, but Micron Technology shares gained after the company raised its fourth-quarter fiscal 2025 guidance, citing stronger pricing and operational performance. Nvidia and Advanced Micro Devices were also in focus following reports that they may agree to pay the U.S. government 15% of their revenues from selling AI chips to China.
In contrast, C3.ai shares slumped after the AI software developer issued a disappointing preliminary earnings update. Gene therapy firms Sarepta Therapeutics and Capricor Therapeutics also fell on news that Vinay Prasad, a vocal critic of U.S. COVID-19 policies, is expected to return to the Food and Drug Administration.
Meanwhile, CoreWeave jumped 7% after JPMorgan more than doubled its price target on the cloud infrastructure firm to $135 from $66, citing continued strong prospects for winning new contracts.
Markets now turn their focus to the inflation numbers, which could determine whether the current pause in Wall Street’s rally is just a breather or the start of a broader pullback.