Wall Street's main indexes ended lower Monday as investors anxiously await inflation data this week to assess the outlook for interest rates and eye U.S.-China trade developments.

Investors expect the recent shakeup at the U.S. Federal Reserve and signs of labor market weakness could nudge the central bank into adopting a dovish monetary policy stance later this year, fueling much of the optimism.

July's consumer inflation report is due on Tuesday, and investors anticipate that the Fed will lower borrowing costs by about 60 basis points by December, according to data compiled by LSEG.

"Markets are on rate watch, so anything inflation-related will move markets this week," said Jamie Cox, managing partner at Harris Financial Group. "It’s all about three rate cuts versus two at this point."

According to preliminary data, the S&P 500 lost 15.13 points, or 0.24%, to end at 6,374.32 points, while the Nasdaq Composite lost 62.99 points, or 0.29%, to 21,388.60. The Dow Jones Industrial Average fell 193.29 points, or 0.44%, to 43,982.32.

Shares of Nvidia and Advanced Micro Devices were volatile through the day.

A U.S. official told Reuters the semiconductor majors had agreed to give the United States government 15% of revenue from sales of their advanced chips to China. Analysts said the levy could hit the chipmakers' margins and set a precedent for Washington to tax critical U.S. exports, potentially extending beyond semiconductors.

Separately U.S. President Donald Trump signed an executive order extending a pause in sharply higher U.S. tariffs on Chinese imports for another 90 days, a White House official said. Enabling semiconductor sales to China was an integral issue in the agreement Washington and Beijing signed this year, which expires on Tuesday. Trump lauded China's cooperation in talks at a White House press conference on Monday.

Traders took a step back after the S&P 500 and the Nasdaq last week logged their strongest weekly performances in more than a month. Citigroup and UBS Global Research became the latest brokerages to raise their year-end targets for the benchmark S&P 500.

Micron Technology raised its forecast for fourth-quarter revenue and adjusted profit, boosting its shares. Intel rallied after a report said CEO Lip-Bu Tan was expected to visit the White House. Trump had called for his removal last week. TKO jumped after Paramount bought the rights from the live entertainment company to exclusively distribute UFC events for the next seven years in a deal valued at around $7.7 billion.