Dow Set to Open Up as Market Looks Ahead to Inflation Data and China Trade Talks
Inflation data, trade talks and earnings—it’s shaping up to be a busy week for markets, and stock index futures were diverging ahead of the opening on Monday.
Dow Jones Industrial Average futures were up 89 points, or 0.2%. S&P 500 futures were gaining broadly flat and Nasdaq 100 futures were falling 0.1%.
The tech-heavy Nasdaq was likely being dragged down by heavyweight stock Nvidia, amid reports the AI chip leader will give some of the revenue from processor sales in China to the Trump administration.
The big macroeconomic focus for the week is the consumer price index for July data on Tuesday, with expectations it will tick higher from June. A team of Nomura analysts led by David Seif forecast month-on-month core price inflation will accelerate to 0.340% from 0.228% in June
“As was the case with June, tariffs continued to push up goods prices. Business surveys and anecdotal information continue to point to increasing price pressures,” wrote Seif and colleagues in a research note.
Following CPI, producer price index will come out on Thursday and the University of Michigan’s latest consumer sentiment reading is expected on Friday. All of that will feed into the Federal Reserve’s interest-rate decision in September. The yield on the benchmark 10-year Treasury note stood at 4.274% early on Monday, ticking down from the previous day.
Meanwhile, investors will also be watching the Tuesday deadline for the U.S.-China trade truce to expire, although White House officials have previously said an extension is likely. The fallout from President Donald Trump’s imposition of tariffs on dozens of countries last week will also continue, with several governments still seeking to negotiate over the levies.
Finally, earnings season is winding down but a couple of standout reports remain, especially those with relevance to the artificial-intelligence trade. That includes AI cloud company CoreWeave on Tuesday and networking equipment specialist Cisco Systems on Wednesday.