U.S. stocks showed mixed signals on Monday, as investors remained cautious ahead of key economic updates and geopolitical developments that could shift market momentum. With inflation data expected this week and renewed U.S.-China trade discussions underway, Wall Street is poised for a potentially volatile stretch.
The May consumer price index (CPI), set to be released midweek, could be a decisive factor in shaping inflation expectations and monetary policy outlooks. This report is particularly significant as it captures the first full month of data since President Trump unveiled a fresh wave of tariffs on April 2. While several of those proposed duties have since been delayed or softened, others have been implemented—raising questions about their downstream impact on prices.
Following the CPI report, wholesale inflation figures are scheduled to be released. These numbers will offer a window into the cost pressures facing businesses and whether those costs are filtering down to consumers. Wholesale prices represent the expenses companies incur for goods and services, and often signal upcoming trends in consumer inflation.
Later in the week, markets will digest the latest consumer sentiment data from the University of Michigan, which will include closely watched figures on inflation expectations. These insights will help gauge how American households are feeling about the economy—and whether they’re bracing for more price hikes.
Adding to the global economic tension are ongoing trade negotiations between the U.S. and China. Officials from both countries recently held talks in London following a contentious phone call between President Trump and Chinese President Xi Jinping. The call came after Trump accused China of breaching a temporary tariff truce that was struck last month in Switzerland. Market participants are now anxiously awaiting updates from the London meetings, which could influence sentiment across global equities and commodities.
At 10:07 a.m. ET, the Dow Jones Industrial Average slipped by 129.80 points, or 0.3%, landing at 42,633.07. Meanwhile, the S&P 500 edged up by 0.01%, or 0.58 point, to 6,000.94, and the Nasdaq Composite rose 0.2%, or 38.4 points, to 19,568.36. All three indexes had ended last week in positive territory, with the S&P 500 closing above the 6,000 level for the first time since February 21—now just under 3% from its all-time high. The yield on the benchmark 10-year U.S. Treasury note declined to 4.494%, suggesting a slight shift in investor appetite toward safer assets amid rising uncertainty.
Attention in Washington also remains firmly fixed on the fate of the sprawling, controversial tax bill dubbed the “One, Big Beautiful Bill.” Market watchers and political analysts alike are monitoring how the bill progresses through the Senate after a very public spat between Tesla CEO Elon Musk and Donald Trump erupted on social media. Musk derided the bill as a “pork-filled Congressional spending bill” and called it “a disgusting abomination,” prompting Trump to fire back by labeling Musk “crazy.” The highly public feud has amplified attention on the bill’s content and the challenges it faces ahead of a potential vote.
On the corporate front, Warner Bros. Discovery announced a major shake-up by splitting into two independent publicly traded companies. The reorganization will see its HBO Max streaming platform, movie studio, and TV production divisions separated from its traditional cable networks. Investors responded favorably to the news, pushing the company’s stock up more than 8%.
In other news, Meta Platforms, parent company of Facebook, is reportedly exploring a multibillion-dollar investment in artificial intelligence firm Scale AI. Although the deal is not finalized, Meta shares inched slightly higher on the report, reflecting growing investor interest in AI-driven ventures.
On the downside, shares of telecommunications company EchoStar plummeted 8.3% amid reports that it may file for bankruptcy. The company is currently under regulatory scrutiny over its spectrum licenses, raising concerns about its long-term viability and financial health.
As the week unfolds, all eyes remain on inflation figures, trade developments, and the political drama surrounding fiscal legislation—any of which could tip the balance for the markets.
