Stock market today: Dow, S&P 500, Nasdaq slump with key inflation report on deck

Stocks declined Monday as President Trump reportedly extended the China tariff deadline by 90 days to November 9, while also confirming a conditional agreement for Nvidia to sell older H20 chips to China with a 15% revenue share to the U.S. government. This tariff news, alongside the clarification that gold will not be tariffed, sets the stage for key inflation data releases this week, including Tuesday's CPI, which are anticipated to reflect broader tariff impacts.

Analysis

U.S. equity markets posted a modest decline, with the Dow Jones Industrial Average falling 0.5%, as investors processed conflicting trade policy signals. The primary driver of uncertainty was a reported 90-day extension for implementing steeper China tariffs, pushing the deadline to November 9 and prolonging the period of trade negotiation ambiguity. In a sector-specific development, the administration confirmed a deal allowing Nvidia and Advanced Micro Devices to sell certain older-generation chips to China, such as Nvidia's H20, in exchange for a 15% revenue share paid to the U.S. government. However, this agreement explicitly excludes next-generation technology like Nvidia's Blackwell, and the market reaction was muted, with both NVDA and AMD shares closing down fractionally. Elsewhere, clarity emerged for the commodities market as gold (GC=F) was officially exempted from tariffs, resolving recent confusion. The market's attention now shifts to a series of key economic releases, including the Consumer Price Index, which will provide the first significant measure of how recent tariffs are impacting inflation, a critical data point following the reacceleration of price pressures in June.

Key Decisions for Investors

• Investors should anticipate continued market volatility driven by trade policy headlines, as the 90-day tariff extension prolongs uncertainty rather than resolving it.
• For semiconductor holdings like NVDA and AMD, the China chip deal provides a partial revenue path but introduces a new 15% margin headwind and reinforces the long-term risk of restrictions on next-generation technology sales.
• Closely monitor this week's CPI and PPI data, as higher-than-expected inflation readings could validate concerns about tariff-driven price pressures and influence near-term monetary policy expectations.
• The official confirmation that gold will not be tariffed removes a key overhang for the asset, reinforcing its potential role as a hedge against ongoing geopolitical and trade-related risks.