Wall Street falls as investors keep an eye on US inflation.

Wall Street's major indexes closed lower on Monday, as investors awaited inflation data to assess the outlook for interest rates and monitored developments in trade between the United States and China.

The S&P 500 lost 0.25% to 6,373.51 points, while the Nasdaq Composite dropped 0.30% to 21,385.40 points. The Dow Jones Industrial Average fell 0.45% to 43,975.89 points.

Investors hope that the recent reshuffle at the U.S. Federal Reserve and signs of weakness in the labor market will lead the central bank to adopt an expansionary monetary policy, which has largely been the driving force behind the optimism.

Consumer inflation for July will be released on Tuesday, and investors expect the Federal Reserve to cut borrowing costs by about 60 basis points between now and December.

"Markets are very much looking at rates, so anything related to inflation will move markets this week," said Jamie Cox, managing partner at Harris Financial Group.

"It's all about three rate cuts versus two right now," he added.

Semiconductor giants NVIDIA and Advanced Micro Devices were volatile in the session.

A U.S. official told Reuters that the companies agreed to give the U.S. government 15 percent of the revenue from sales of their advanced chips to China.

BMV and Biva win

The Mexican stock market closed higher as investors awaited inflation data relevant to the Federal Reserve's decision-making.

The Mexican Stock Exchange's main index, the S&P/BMV IPC, rose 0.47% to 58,342.87 points, while the FTSE-BIVA, the most representative indicator of the Institutional Stock Exchange, gained 0.37% to 1,171.08 points.

Inflation data in the United States is important for the markets, as it will determine the Federal Reserve's September decision.

Invex experts said that politics will continue to add volatility to the markets and considered that corporate performance will be the main driver of market growth.

"With this in mind and taking into account the current high valuations in the equity market, we consider caution essential and remain vigilant about the effects that US trade policy could have on the economy and markets," wrote Fernando Rodríguez, a stock market analyst at Invex.