Markets Slip Ahead of Inflation Data as Investors Take Profits
2025-08-11 23:20
Wall Street Volatility: Investors Brace for Inflation Data as Stocks Slip
U.S. stocks closed lower on Monday as investors took profits and adopted a cautious stance ahead of key macroeconomic reports this week.
The S&P 500 fell 0.16%, the Dow Jones dropped 0.40%, and the Nasdaq 100 lost 0.26%. Market pressure came from position adjustments before the release of U.S. inflation data, expected on Tuesday and Thursday. Analysts forecast July CPI to rise to +2.8% y/y, with core CPI reaching +3.0% y/y.
Despite dovish comments from Fed Governor Michelle Bowman, who signaled support for three rate cuts this year, pushing 10-year Treasury yields down to 4.26%, investors preferred to lock in gains. According to the CME FedWatch tool, the probability of a September rate cut has risen to 89%.
In corporate news, semiconductor stocks rallied — Nvidia, AMD, and Micron gained after Bloomberg reported possible easing of U.S. export restrictions on chips to China. Micron rose more than 3% after raising its quarterly revenue guidance. Intel jumped over 4% following reports of a planned meeting between its CEO and President Trump.
Top gainers included Albemarle (+9%) on news of halted lithium production in China, Elf Beauty (+8%) after an upgrade from Morgan Stanley, and Kratos Defense (+5%) following positive initiation from Canaccord Genuity.
On the downside, Monday.com (-26%) and C3.ai (-23%) sank on weak guidance, AAON (-13%) disappointed with earnings, and Hershey (-5%) fell amid surging cocoa prices.
Global markets were mixed: Euro Stoxx 50 lost 0.31%, Shanghai Composite rose 0.34%, and Japan’s Nikkei was closed for a holiday.
Key drivers in the coming days will include CPI and PPI releases, retail sales, industrial production data, and updates on U.S. trade tariffs — including a 100% duty on semiconductor imports, planned increases on Indian goods, and upcoming pharmaceutical import tariffs.
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