Wall Street's main indexes ended lower on Monday as investors anxiously await inflation data this week to assess the outlook for interest rates and eye U.S.-China trade developments.
Investors expect the recent shakeup at the U.S. Federal Reserve and signs of labor market weakness could nudge the central bank into adopting a dovish monetary policy stance later this year, fueling much of the optimism.
Market Snapshot
The Dow Jones Industrial Average fell 200.52 points, or 0.45%, to 43,975.09, the S&P 500 lost 16 points, or 0.25%, to 6.373.45 and the Nasdaq Composite lost 64.62 points, or 0.30%, to 21,385.40.
Market Movers
Albemarle shares rose 7% after battery maker Contemporary Amperex Technology said it had closed a major lithium mine in China due to licensing issues. The news drove shares of lithium producers, including Albemarle, higher amid investor speculation that Beijing could move to tackle overproduction. Sigma Lithium soared 23%.
C3.ai sank 26%. The artificial-intelligence software company pre-announcedquarterly resultslate Friday, and guided to revenue of around $70.3 million, or roughly 33% below its previous forecast.
Coinbase Global rose 2.9%, mirroring a jump in crypto pricesover the weekend. Bitcoin was hovering below its record high of nearly $123,000. MicroStrategy shares rose 1.3%; BitMine rose 15%.
Shares of Nvidia was down 0.4% while Advanced Micro Devices shares declined 0.3%. The Wall Street Journal reported Sunday that the chip makers plan to give the Trump administration a 15% cut of the revenue generated by sales of their AI chips in China. The arrangement comes alongside approval for exports of Nvidia’s H20 AI chip and AMD’s MI308 to China, the Journal reported, citing people familiar with the matter.
Micron Technology on Monday raised its forecast for fourth-quarter revenue and adjusted profit, due to surging demand for its memory chips used in artificial intelligence infrastructure, sending its shares up 4%.
Shares of artificial-intelligence software firm BigBear.ai fell 29% in after-hours trading after its earnings and outlook came in far short of expectations.
Cannabis shares continued to jump in after-hours trading. Tilray up 13% after a 42% rally in regular session; Canopy Growth up over 26%. President Trump is considering reclassifying marijuana as a less dangerous drug, according to people familiar with the matter, after pot companies have poured millions of dollars into Trump’s political groups.
Shares of Monday.com cratered 30%, even after the software company posted earnings that beat expectations. Management guided for current-quarter revenue of $311 million to $313 million, possibly disappointing investors as the lower end of the range came in below estimates.
AMC Entertainment rose 3.4% after the movie-theater chain reported second-quarter earnings that beat expectations. Adjusted earnings came in at break-even per share on revenue of $1.4 billion, beating analysts’ calls for a loss of 7 cents per share on revenue of $1.3 billion.
Sarepta Therapeutics fell 1.6%. The U.S. Department of Health and Human Services confirmed the return of Food and Drug Administration regulator Dr. Vinay Prasad, just two weeks after hissudden departure. Prasad, who will resume his role as the head of the FDA’s Center for Biologics Evaluation and Research, hasadvocated forhigher standards for drug approvals, and his exit in late July was largely seen as a good sign by biotech investors.
Avantor jumped 5.2% after activist investor Engine Capital disclosed a 3% stake in the life-sciences company. In a statement to Barron’s, Engine Capital’s Arnaud Ajdler and Brad Favreau called for stricter cost discipline, immediate share repurchases, and “a significant overhaul of the Board,” among other changes. Avantor didn’t respond to a request for comment.
Tegna stock jumped 30% on multiple reports suggesting the TV station operator was in talks to be acquired by larger rival Nexstar Media Group. Reports of a possible deal come as the Federal Communications Commission embarks on a deregulation push that could see the broadcasting industry narrowed to fewer competitors. Nexstar shares rose 3.9%.
Rumble was up 3.1% after rising double-digits earlier in the session. The video-sharing platform unveiled an all-stock bid to buy German data-infrastructure company Northern Data Group for roughly $1.2 billion. Stablecoin issuer Tether, Northern Data’s largest shareholder, has indicated its support. Completion of the offer would make Tether the single largest holder of Rumble common stock.
Market News
Trump Extends China Truce for 90 Days, Averting Tariff Hike
President Donald Trump extended a pause of sky-high tariffs on Chinese goods for another 90 days into early November, stabilizing trade ties between the world’s two largest economies.
Trump signed an order extending the truce, according to a person familiar with the matter. The pact, which saw the US and China agree to reduce tit-for-tat tariff hikes and ease export restrictions on rare earth magnets and certain technologies, was due to expire Tuesday.
Trump Tax Law Squeezes Poor, Boosts Income for Wealthy, CBO Says
President Donald Trump’s tax and spending law will deal a financial blow to the poorest Americans while boosting the income of wealthier households, according to a new analysis from the Congressional Budget Office.
The poorest 10% of households will lose an average of about $1,200 in resources per year, amounting to a 3.1% cut in their income, according to the analysis released Monday of the “One Big Beautiful Bill Act.” Households in the highest 10% of incomes will see about a $13,600 boost in resources on average, amounting to a 2.7% increase in their incomes.
Earners in the middle of the distribution will see their annual resources grow by about $800 to $1,200 on average, according to the analysis.
