The benchmark US stock measures were tracking in the red before the opening bell Monday as traders prepare for a busy week that includes a key inflation report, remarks by Federal Reserve Chair Kevin Warsh, and Nvidia's (NVDA) latest financial results.
The S&P 500 declined 0.2%, the Dow Jones Industrial Average edged down 0.1%, and the Nasdaq was off 0.6% in premarket activity. All three main indexes finished Friday trading higher.
The personal income and outlays report for July is scheduled for release on Wednesday. The report includes the personal consumption expenditure core price index, the Fed's preferred inflation metric.
Warsh is expected to speak at the Fed's annual economic symposium in Jackson Hole, Wyoming, on Friday. Investors are likely to closely monitor his comments for clues about the central bank's policy outlook.
Warsh's keynote speech is "unlikely to give any significant hints" related to near-term policy, Oxford Economics said in remarks emailed toon Monday.
"But we suspect he could shed some light on his plans to overhaul the Fed's longer-term policies and operations," Oxford Economics said.
Markets are currently pricing in a 64% probability that the Fed will keep its benchmark rate steady in September, with the remaining odds in favor of a 25-basis-point hike, according to the CME FedWatch tool.
Treasury yields were down in premarket action, with the two-year retreating 0.9 basis points to 4.23% and the 10-year rate off 0.3 basis points to 4.71%.
Last week, the Treasury Department surprised markets by announcing it will at least double its buybacks for longer-dated Treasuries to $4 billion per operation. Treasury Secretary Scott Bessent reportedly said the planned buybacks could be worth more than $4 billion per issue.
Technology bellwether Nvidia is scheduled to release its latest quarterly earnings on Wednesday. In a Monday client note, Wedbush Securities said it expects the company to "exceed its guidance" and issue third-quarter revenue guidance above market estimates, based on a strong hyperscale spending backdrop and a robust supply position.
Marvell Technology (MRVL), CrowdStrike (CRWD), Salesforce (CRM) and Intuit (INTU) are also slated to post their results later this week.
West Texas Intermediate crude oil dropped 2.4% to $85.02 a barrel before the open, while Brent fell 1.8% to $92.73.
In an opinion piece for the Financial Times over the weekend, Bessent said the US would launch "the single greatest financial offensive ever" against Iran on Monday.
"Now we are entering the endgame," Bessent wrote. "At dawn begins an economic D-Day."
Last week, President Donald Trump threatened to launch "economic warfare" against Iran and impose financial consequences for countries that seek to provide any form of support to Tehran.
Iranian officials reportedly responded by warning Gulf neighbors not to join the US economic measures against the country, according to CNBC. Iran's state-controlled Persian Gulf Strait Authority warned on X that vessels breaching its protocols in the Strait of Hormuz could face restrictions on future passages, including fines, detention or confiscation.
The US on Saturday imposed 50% tariffs on certain Canadian goods after the two countries failed to reach a trade agreement, as both sides blamed each other for the breakdown in negotiations, Reuters reported. Canadian Prime Minister Mark Carney said in a statement that Canada will match the US tariffs "dollar for dollar."
Monday's thin economic calendar has the Chicago Fed national activity index for July at 8:30 am ET.
Temu parent PDD (PDD) inched up 3% before the bell despite missing second-quarter revenue estimates.
Chinese electric vehicle manufacturer Xpeng (XPEV) was down 6% in premarket trading after reporting its latest results.
Gold inclined 0.5% to $4,701 per troy ounce, while bitcoin gained 0.8% to $77,971.
