Equity Alert
US indices end lower on caution ahead of inflation data
This story was originally published at 08:11 IST on 12 August 2025
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Equity Alert: US indices end lower on caution ahead of inflation data
MUMBAI--0800 IST--Indices in the US ended lower Monday in a choppy session as investors were cautious ahead of the July inflation data, due later in the day. Investors assessed tariff-related developments after US President Donald Trump officially extended a truce with China over tariffs by another 90 days, hours before triple-digit tariffs were to take effect on the Asian country. Traders also await talks between the US and Russia, scheduled for Friday, to resolve the ongoing conflict in Ukraine.
Investors especially await the US inflation data, which will lend cues on when the Federal Reserve is likely to cut interest rates again. A majority of traders expect at least a 25-basis-point rate cut in the Fed's September meeting amid a set of adverse economic data over the past month, especially the non-farm payrolls data. The CME Fedwatch tool showed an 85% probability of a 25-bps rate cut in September, lower than 89?ay ago and further lower than the 90% probability a week ago.
"If, however, softer US CPI readings materialise, including the core goods figures, this would likely challenge the dollar too by supporting the case for further Fed easing, and perhaps see greater criticism from the US administration towards Fed Chair Powell," Reuters reported Paul Mackel, global head of foreign exchange research at HSBC, as saying.
CFRA Research's Sam Stovall, however, said the expectations of the market are too high. "I'm getting a little concerned that the market is going to end up being disappointed...the Fed will have a conundrum to deal with if inflation remains sticky and if the consumer remains willing to spend — where is the need to cut rates?" CNBC reported Stovall as saying.
On the stocks front, healthcare company Owens & Minor plunged 35?ter it said that stranded costs will continue to rise, and it will focus on reducing such costs to improve profits, CNBC reported. Elf Beauty surged 10?ter Morgan Stanley upgraded the beauty brand to 'overweight' from 'equal-weight'. Hershey's fell 5?ter cocoa futures surged 10%. The likes of BlackRock, Electronic Arts, eBay, Cummins, and Nasdaq, all hit new all-time lows during the session.
Global brokerage UBS raised its price target for the S&P 500 to 6100 from 5500 by the end of 2025. "This (geopolitical headwinds) drives us to call the market lower in the near term and to expect it to remain below current levels even by end 2025...we then see a smart recovery in H2 2026," it said.
Following are the closing levels of US indices Monday:
| INDEX | LAST LEVEL | CHANGE IN % |
| Dow Jones Industrial Average | 43975.09 | (-)0.45 |
| NASDAQ Composite | 21385.404 | (-)0.30 |
| S&P 500 | 6373.45 | (-)0.25 |
(Akash Mandal)
US$1 = INR 87.66
End
Edited by Tanima Banerjee
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