US Stocks Decline Ahead of Key July Inflation Data

U.S. stocks declined across major indices as investors awaited key inflation data, with the Dow Jones falling by over 200 points and the S&P 500 and Nasdaq also retreating slightly from recent highs. President Trump extended the US-China tariff deadline by 90 days, which did not prevent market losses amid concerns over inflation and economic growth. Analysts and economists forecast a moderate rise in the Consumer Price Index (CPI), with expectations of a 0.2-0.3% monthly increase and a 3.0% annual core inflation rate, which could influence Federal Reserve interest rate policies. Market volatility is anticipated depending on whether the inflation data suggests a slowing economy or persistent price pressures, impacting the Fed's ability to cut rates. Investors remain cautious as Trump's tariffs and recent weak employment reports raise questions about economic momentum, while corporate earnings and sector-specific news, such as gains in AI-related stocks and tariff-related challenges for tech firms, add complexity to the market outlook. Overall, the inflation report is viewed as critical for determining near-term market direction amid geopolitical and economic uncertainties.