FX.co ★ US Stocks Dip Ahead of CPI, Tariff Pause Extended

On Monday, U.S. stocks experienced a decline as traders prepared for a week filled with significant economic reports and geopolitical developments. The S&P 500 saw a slight decrease of 0.1%, the Dow Jones Industrial Average dropped by more than 150 points, and the Nasdaq 100 inched down by 0.08%. This downturn follows last week’s robust performance, during which the technology-focused index achieved consecutive record highs. Investors are closely monitoring the release of July's Consumer Price Index (CPI) on Tuesday and the Producer Price Index (PPI) on Thursday. These metrics are pivotal for the Federal Reserve's interest rate decision in September, with the market largely anticipating a rate cut.

Trade tensions continue as President Trump announced an extension of the 90-day suspension on tariffs imposed on Chinese products. Additionally, he confirmed a deal requiring Nvidia and AMD to allocate 15% of their revenue from specific AI chip sales to China, back to the U.S. The President also reassured that gold imports would remain untaxed, alleviating concerns surrounding Swiss gold bars.

The technology sector displayed mixed results: Intel's shares rose following news that its CEO is set to visit the White House, while Micron experienced gains after increasing its earnings forecast. Conversely, Apple’s stock fell by 1.4%, despite coming off its strongest performance week in over five years.