Markets React to Powell's Cautious Tone on Potential Rate Cut

On Monday, the stock market's initial enthusiasm in response to Federal Reserve Chair Jerome Powell's indication of a potential interest rate cut in September waned, with major indexes mostly easing after Friday's gains.

The dollar found stability, and U.S. Treasury yields increased, reflecting a market keenly attuned to future economic signals, such as the U.S. personal consumption prices reading due Friday, a favored inflation gauge by the Fed.

Global markets also eyed Nvidia's upcoming results, geopolitical tensions involving the U.S. and Korea, and the European Central Bank's September policy decision as key influences on economic sentiment this week.

(With inputs from agencies.)