Wall Street stocks opened mixed on Monday, ahead of the crucial release of US inflation data and the approaching deadline for the interim tariff reduction agreement between Washington and Beijing.

Minutes after trading opened, the Dow Jones Industrial Average rose 0.2% to 44,252.25, while the S&P 500 was flat at 6,388.35. The tech-rich Nasdaq Composite Index weakened 0.2% to 21,403.12.

This movement comes after US employment data for the past three months showed weakness, which is considered a "green light" for the Federal Reserve to cut interest rates to boost the world's largest economy, said Art Hogan of B. Riley Wealth Management.

This year, the Fed has kept interest rates steady while monitoring the impact of President Donald Trump's extensive tariffs on the economy. The US central bank is mandated to maintain price stability and maximize employment, making inflation a key policy focus.

However, Hogan believes the consumer price index (CPI) report due Tuesday "will have to post a very strong increase" to prevent the Fed from cutting interest rates in September, given signs of weakness in the labor market.

The interim US-China deal to reduce tariffs will also expire on Tuesday. Investors are also looking forward to Friday's meeting between US President Donald Trump and Russian President Vladimir Putin in Alaska to try to end the three-year war following Russia's invasion of Ukraine. However, Kyiv is concerned that the deal will force Ukraine to cede territory to Russia.

The invasion of Ukraine "has become a long-standing global obstacle and has completely disrupted the flow of world trade," Hogan told AFP. 

Source: Newsmaker.id