Stock Market Today: Stocks Fall Ahead of New Inflation Data

• US stocks were lower on Monday as investors looked to new economic data due out in the week.
• Late last week, major indexes nearly erased all of the losses incurred in a sharp three-day sell-off.
• This week, markets will get updates on consumer and producer inflation and retail sales for July.

US stocks were lower on Monday ahead of new economic data as investors struggled to extend a rebound and completely erase all of the losses from last week’s big sell-off.

The stock market ended last week nearly flat after the biggest sell-off in over two years.

This week, traders will be looking for signals in the latest updates on the economy. On Tuesday, data on wholesale inflation will be released, though the main event for the week will be consumer inflation data on Wednesday with the consumer price index report for July.

Core CPI is expected to be 0.2%, slightly ahead of June’s 0.1% reading. On an annual basis, inflation is expected to show prices rose 3% last month, in-line with June figures.

A slight month-to-month increase wouldn’t be enough to disrupt the outlook for rate cuts next month, market experts say, and the only debate in markets seems to be how big of a rate cut will be delivered.

According to the CME FedWatch Tool, markets see almost even odds of a 25 basis point or a 50 basis point cut at next month’s policy meeting.

As for further swings in stocks, Bank of America says look for further moves based on the data this week, with a soft CPI reading likely to spark a relief rally. However, the risk of a “major downside event” is possible if the data is hotter than expected.

“A hotter print would be a bigger surprise to the market than a softer print,” BofA analysts wrote. “Equities need the Fed at least until the next strong macro data (or blowout NVDA earnings). What’s missing is the Fed’s nod, restoring confidence that growth is ultimately going to be supported.”

Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Monday:

Here’s what else is going on today:

In commodities, bonds, and crypto: