Stocks were choppy to start the week as market participants looked ahead to this week's key inflation updates. The data starts rolling in on Tuesday morning with the release of the July Consumer Price Index (CPI) report.
The June CPI report showed that President Donald Trump's tariff policies are starting to have a moderate impact on inflation.
And over the next few months, Goldman Sachs economists "expect tariffs to continue to boost monthly inflation and forecast monthly core CPI inflation between 0.3% and 0.4%."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
For July, specifically, the group anticipates a rebound in used car prices, though it believes new car prices fell 0.2%. The economists also expect upticks in airfare and categories with outsize exposure to tariffs, including household furnishings.
Overall, Goldman economists are eyeing a 0.3% monthly increase in headline inflation – unchanged from June thanks to lower energy prices – and a 0.3% rise in core CPI, higher than the 0.2% from the month prior.
Tuesday also marked the end of a trade truce between the U.S. and China, though the White House announced this afternoon that the deadline will be extended by 90 days.
Nvidia, AMD will give U.S. a cut of AI chip sales
In an effort to assist in easing semiconductor export restrictions, Nvidia (NVDA, -0.3%) and Advanced Micro Devices (AMD, -0.3%) agreed to give the U.S. 15% of the revenue the two companies get from selling their AI chips to China.
"We believe the potential combined annualized revenue run rate for these chips to be about $30 billion to $35 billion, which would essentially result in about a $5 billion revenue tax over the next year," says CFRA Research analyst Angelo Zino.
The analyst notes that "the tax will have a negative impact on profit margins tied to China sales," but he believes this is "worth the cost" of "reentry into the second-largest GPU market" in the world.
C3.ai stock spirals after "unacceptable" earnings
In other AI news, C3.ai (AI) plunged 25.6% after the enterprise artificial intelligence software firm reported preliminary results for its fiscal first quarter.
The company said it expects total revenue for the three-month period to arrive between $70.2 million and $70.4 million, well below the $101.7 million analysts were calling for and the $87.2 million it reported the year prior.
CEO Thomas Siebel said that the sales results "were completely unacceptable," and that the company's restructuring, which was announced in a separate press release, will accelerate growth going forward.
C3.ai will release its full fiscal Q1 results after the market closes on Wednesday, September 3.
The tech stock is now down more than 50% for the year to date and most of Wall Street remains on the sidelines. Of the 14 analysts covering AI who are tracked by S&P Global Market Intelligence, four say it's a Strong Buy, four have it at Hold and six call it a Sell or Strong Sell. This works out to a consensus Hold recommendation.
As for the main indexes, the tech-heavy Nasdaq Composite fell 0.3% to 21,385, the broader S&P 500 shed 0.3% to 6,373, and the blue-chip Dow Jones Industrial Average gave back 0.5% to 43,975.
Related content
- Is Investing In Gold Worth It? How Gold Prices Have Changed
- How Big Will the Fed Rate Cut Be This Fall?
- 5 Popular Investing Strategies You Should Really Rethink
-
Stocks End Strong Month on a Down Note: Stock Market TodayThere was likely a bit of profit-taking ahead of a historically weak September.
-
The New Rules for Student LoansWhether you’re paying off education debt now or planning to borrow in the future, get ready for bigger payments and lower loan limits.
-
Stocks End Strong Month on a Down Note: Stock Market Today
There was likely a bit of profit-taking ahead of a historically weak September.
-
If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages – until it wasn't.
-
The Seven-Day Financial Reset: A Simple Plan to Get Control of Your Money, From an ExpertSometimes, getting unstuck requires a reset. These practical steps can help you tackle your money issues and feel less overwhelmed by it all.
-
Three Pros (and Four Cons) of Hiring Multiple Financial Advisers: The View From a Financial AdviserThere's nothing to stop you from working with several financial advisers instead of just one. But take a balanced view of the risks and rewards first.
-
S&P 500 Tops 6,500 Even as Nvidia Slips: Stock Market TodayThe world's most valuable company closed lower after earnings, but the S&P 500 managed to notch a new record high.
-
DexCom, GE, SLB: Why Experts Rate These Stocks at Strong BuyWall Street gives these three diverse names Strong Buy recommendations with high potential upside.
-
Here's Why Munis Aren't Just for Wealthy Investors NowBuyers of all levels should be intrigued by municipal bonds' steep yield curve, strong credit fundamentals and yield levels offering an income buffer.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
