U.S. stocks closed lower, with the tech-laden Nasdaq off a new intraday record high, as investors geared up for a key inflation report.

July's consumer price index is due before the market opens on Aug. 12. A Reuters poll of economists forecasts the annual rate at 2.8%, up from June's 2.7%. Investors will be watching to see whether President Donald Trump's tariffs on imports are translating into higher prices. The June CPI report suggested tariffs were boosting the prices of some goods.

July inflation data could help determine whether the Federal Reserve will lower interest rates soon.

After weaker-than-expected monthly jobs growth, the markets aggressively priced in rate cuts. The CME FedWatch tool that tracks the odds the markets put on a rate move at each Fed policy meeting shows a more than 88% chance of a rate cut at the next meeting in September.

The blue-chip Dow fell 0.45%, or 200.52 points, to 43,975.09; the broad S&P 500 dropped 0.25%, or 16 points, to 6,373.45 and the Nasdaq reached a new all-time high during the day but ended down 0.3%, or 64.62 points, to 21,385.40. The benchmark 10-year Treasury yield slipped to 4.279%.

China gets an extension

The market showed little reaction to reports of another 90-day tariff pause for China that means a trade war won't be imminent.

A trade truce with China was set to expire on Aug. 12. If it had expired without a trade deal, high tariffs would have kicked in. The extension gives time for the two countries to flesh out a framework achieved earlier this year. Over the weekend, Trump urged China to buy more American soybeans. China is one of the United States' biggest trading partners.

Gold saved from tariff

Gold prices dropped after surging last week to a record high on reports imports of one-kilo gold bars would be included in Trump's 39% reciprocal tariffs.

Gold prices were last down 2.59% at $3,401 per ounce.

More names in mix for Fed chair

Fed governors Michelle Bowman and Philip Jefferson, Dallas Fed President Lorie Logan and former St. Louis President James Bullard are all being considered to replace Fed Chair Jerome Powell when his term expires in May, according to Bloomberg.

They join National Economic Council head Kevin Hasset, former Fed Governor Kevin Warsh, current Fed Governor Christopher Waller and economist Marc Sumerlin, the report said.

Trump is expected to make his decision in the fall.

The U.S. government takes a cut

Semiconductor giants Nvidia and AMD will give the U.S. government 15% of their revenue from certain chips sold in China, the Financial Times reported. In return, the companies received export licenses to sell Nvidia’s H20 and AMD’s MI308 chips in China, according to the FT. Such a deal would be unprecedented.

Separately, Nvidia refuted allegations from Chinese state media that its H20 artificial intelligence chips are a national security risk for China.

Nvidia stock and AMD shares both edged lower.

Corporate news

  • Micron boosted its earnings and revenues outlook for the last three months of its fiscal year. Shares of the chip company added 4.09%.
  • Intel chief executive Lip-Bu Tan will meet with Trump after the president called for his removal last week over ties to Chinese businesses. Intel stock gained 3.66%.
  • Nexstar is in advanced talks to acquire rival Tegna, The Wall Street Journal reported. Nextstar stock rose 3.89%.
  • Avantor shares added 5.22% after activist investor Engine Capital built a stake in the life-sciences company and plans to push the company to make changes or sell itself.
  • AMC Entertainment posted stronger-than-expected quarterly results. The movie theater chain's stock jumped 3.41%.
  • Paramount bought the U.S. rights to TKO Group’s UFC for $7.7 billion over the next seven years, beginning in 2026. TKO shares rose 10.25%.
  • C3.ai warned fiscal first-quarter results would be weaker than Street estimates. Shares plunged 25.58%.

Oil prices dip

Oil prices fell last week as investors awaited talks between Russian president Vladimir Putin and Trump. The two presidents will discuss what it will take to stop the Ukraine-Russia war.

The meeting raises expectations of a diplomatic end to the war. If the war ends, oil supply could increase on the world market as sanctions on Russian oil are lifted.

Since then, oil prices have steadied. They were last up 0.31% at $64.08 per barrel.

Cryptocurrency

El Salvador passed a law last week allowing financial institutions with over $50 million in capital to becom an investment bank and apply for crypto licenses and offer crypto-related services to investors with over $250,000 in liquid assets.

Bitcoin neared its record high, last down 0.36% at $118,829.80. The gains also pulled up Ether over the weekend. Ether rose to the highest level since 2021 and was last up 0.03% to $4,252.95.

This story was updated with new information.

Medora Lee is a money, markets, and personal finance reporter at USA TODAY. You can reach her at mjlee@usatoday.com and subscribe to our free Daily Money newsletter for personal finance tips and business news every Monday through Friday morning.

This article originally appeared on USA TODAY: US stocks end down, with Nasdaq off intraday record high ahead of inflation report

Reporting by Medora Lee, USA TODAY / USA TODAY

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