US stocks slipped on Monday as investors looked ahead to key inflation data later this week, shrugging off a fresh delay in tariff increases on Chinese goods.
The Dow Jones Industrial Average fell 200 points, or 0.45%, to close at 43,975. The S&P 500 lost 0.25% to 6,373, while the Nasdaq Composite slipped 0.3% to 21,385.
Inflation data in focus
Tuesday’s release of the July consumer price index, followed by the producer price index on Thursday, is expected to be the key test for markets trading near record highs. Economists surveyed by Dow Jones expect CPI to rise 0.2% month-on-month and 2.8% year-on-year. Core CPI, excluding food and energy, is forecast to climb 0.3% on the month and 3.1% annually, both hotter than June.
The inflation reports come ahead of the Fed’s Jackson Hole meeting later this month, which could set the tone for its September policy decision. Markets are currently pricing in an 87% chance of a rate cut next month, but some strategists warn that investors may be over-confident.
Tariff extension fails to lift sentiment
Trade policy briefly made headlines after President Donald Trump signed an executive order extending the suspension of higher tariffs on Chinese imports for another 90 days. The order was signed just hours before the previous pause expired.
While the move delays a return to the 145% tariff rate imposed earlier in the year, markets showed little reaction, with traders remaining focused on the inflation outlook.
Australian market outlook
Australian shares are set to open lower, with the SPI 200 futures down 13 points, or 0.2%, to 8,783. The local session will be dominated by the Reserve Bank of Australia’s policy meeting at 2.30pm, where a 25-basis-point cut to 3.60% is widely expected. Governor Michele Bullock will speak at 3.30pm.
Before that, NAB will release its July business confidence survey at 11.30am, and later tonight the US CPI report will be in focus for global markets.
