Wall Street's Juggle: Inflation Woes and Chip Revenue Sharing

Wall Street witnessed a turbulent session on Monday, marked by declining major indexes as investors braced themselves for upcoming inflation data. The spotlight remained on semiconductor companies, which oscillated after agreeing to remit a portion of their Chinese sales revenue to the U.S., an unprecedented move stemming from a policy shift initiated during the Trump administration.

This deal mandates chipmakers like Nvidia and Advanced Micro Devices to share 15% of their revenue from advanced chip sales to China with Washington, potentially affecting their profit margins. Analysts speculate this could set a precedent for taxation on critical U.S. exports beyond semiconductors.

Meanwhile, the tech-heavy Nasdaq is aiming for a record third consecutive closing high. Investors are intently watching the Federal Reserve, anticipating a dovish monetary policy amid economic indicators such as labor market weaknesses. As the FOMC's upcoming decision looms, all eyes remain on inflation figures set to be released this week.

(With inputs from agencies.)