US: Stocks slump ahead of key US inflation report
[NEW YORK] Wall Street stocks tumbled on Monday on investor trepidation ahead of key US inflation data, despite news reports that President Donald Trump had signed an order to extend a US tariff truce with China.
The Dow Jones Industrial Average slid 0.5 per cent to 43,975.09, while the broad-based S&P 500 Index lost 0.3 per cent to 6,373.45.
The tech-focused Nasdaq Composite Index fell 0.3 per cent to 21,385.40.
The gloomy showing came even as US media reported that Trump was delaying the reimposition of higher tit-for-tat tariffs on Chinese products for 90 days.
Trump separately added in a Truth Social post that gold would not face additional US tariffs, after a customs letter that was made public last week said gold bars at two weights - 2.8 kg in total - should be classified as subject to duties.
For now, investors are awaiting consumer price index data due early on Tuesday for signs of how Trump’s various tariffs have hit the economy.
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Since returning to the presidency this year, Trump has slapped wide-ranging tariffs on US trading partners and sector-specific imports.
“If that data comes in weaker than expected, meaning inflation fell because the economy’s slowing down, that’s going to be a double-edged sword,” said Adam Sarhan of 50 Park Investments.
Markets could see a weaker number as good news as it gives the Federal Reserve room to cut interest rates further.
“On the other hand, it’s not bullish because that means the economy’s slowing down,” he added.
Pointing to a recent employment report that signaled a weakening jobs market, Sarhan said that it remains unclear if the downcast figures were a one-off report or signs of a more widespread decline. AFP
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