S&P 500 Holds Steady Ahead of Key CPI Data and U.S.-China Talks
The S&P 500 was flat on Monday, with investors pausing ahead of crucial U.S. inflation reports due later this week.
At 12:56 ET (16:56 GMT), the Dow Jones Industrial Average fell 122 points, or 0.3%. The S&P 500 edged up 0.04%, while the Nasdaq Composite gained 0.2%.
CPI Leads Busy Economic Data Week
Wall Street indexes have largely benefited from a strong second-quarter earnings season, with high beat rates and upward revisions. On Friday, the Nasdaq Composite hit a new intraday high, while the S&P 500 closed just shy of its record.
This momentum will be tested by key economic releases, starting with July’s Consumer Price Index (CPI) on Tuesday. Producer Price Index (PPI) data is due Thursday, followed by U.S. retail sales and a consumer sentiment survey on Friday.
A weak July jobs report, with sharp downward revisions for June and May, has fueled expectations for a Federal Reserve interest rate cut in September.
Inflation remains stubbornly above the Fed’s 2% target, with higher tariffs from the Trump administration expected to add further upward pressure on prices. Analysts at ING expect core CPI to accelerate 0.3% month-on-month and 3.0% year-on-year, a level seen as acceptable for a September rate cut given the softer labor market.
U.S.-China Trade Truce Deadline Approaches
Investors are also watching the August 12 deadline for the U.S.-China tariff truce. Both sides, after recent talks in Stockholm, have signaled interest in extending the pause on tariffs, but President Donald Trump has yet to sign off on a deal.
Trump is also set to meet Russian President Vladimir Putin in Alaska on August 15 in a bid to negotiate an end to the war in Ukraine. It will be the first face-to-face meeting between U.S. and Russian leaders since June 2021.
Nvidia and AMD in Focus Over China Sales
Micron Technology (NASDAQ:MU) rose after raising its fiscal Q4 2025 guidance, citing stronger pricing and execution.
Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) are under scrutiny following media reports suggesting both could pay the U.S. government 15% of revenue from AI chip sales to China.
Earnings Movers
- C3.ai (NYSE:AI) dropped sharply after a disappointing preliminary earnings update.
- Sarepta Therapeutics (NASDAQ:SRPT) and Capricor Therapeutics (NASDAQ:CAPR) fell on reports that Vinay Prasad, a critic of COVID-19 vaccine and mask mandates, may return to the FDA.
- CoreWeave Inc. (NASDAQ:CRWV) jumped 7% after JPMorgan more than doubled its price target to $135 from $66, citing strong potential for winning new cloud infrastructure contracts.
