New York, NY – U.S. stock markets closed lower on Monday as investors adopted a cautious stance ahead of crucial inflation data due later in the week and processed the latest developments in U.S.-China trade relations.
At the closing bell, the Dow Jones Industrial Average was down 199 points, or 0.5%. The broader S&P 500 index slipped 0.2%, while the tech-heavy NASDAQ Composite fell 0.3%. The slide came after a positive end to the previous week, where the Nasdaq had touched a new intraday high.
Trade and Geopolitics in Focus
A key development influencing market sentiment was the report that President Donald Trump signed an executive order extending the deadline for new China tariffs by 90 days, pushing it to November 9. While the move averts an immediate escalation ahead of the original August 12 deadline, it ensures that uncertainty over the U.S.-China trade relationship will continue to be a central theme for investors.
In other geopolitical news, a high-stakes meeting between President Trump and Russia’s Vladimir Putin is reportedly scheduled for August 15 in Alaska. The summit is aimed at seeking a resolution to the war in Ukraine.
Inflation Data Looms Large
Investors are bracing for a week packed with key economic indicators, headlined by Tuesday’s release of the U.S. consumer price index (CPI) for July. This will be followed by producer price data on Thursday and reports on retail sales and consumer sentiment on Friday.
The focus on inflation is particularly high following a weak July jobs report, which has fueled expectations that the Federal Reserve may cut interest rates next month. While inflation remains above the Fed’s 2% target, analysts at ING noted, “Consensus is expecting another acceleration in core CPI… That is a number that can probably be seen as acceptable for the Federal Reserve to proceed with a September cut.”
Movers and Shakers in Tech and Biotech
While the broader market was subdued, several individual companies saw significant trading activity:
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Chipmakers: Nvidia (NASDAQ:NVDA) and Advanced Micro Devices (NASDAQ:AMD) were in the spotlight following reports that the companies may be required to pay the U.S. government 15% of returns from A.I. chip sales to China. In contrast, memory chipmaker Micron Technology (NASDAQ:MU) saw its stock rise after raising its fourth-quarter guidance.
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Enterprise AI: Shares of C3.ai (NYSE:AI) fell sharply after the company issued a disappointing preliminary earnings announcement.
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Biotech: Gene therapy developers Sarepta Therapeutics (NASDAQ:SRPT) and Capricor Therapeutics (NASDAQ:CAPR) both saw their stocks decline on news regarding a potential leadership change at the Food and Drug Administration (FDA).
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Cloud Infrastructure: CoreWeave Inc (NASDAQ:CRWV) was a bright spot, gaining 7% after JPMorgan more than doubled its price target on the stock, citing strong business prospects.
