Federal Reserve Chair Jerome Powell signaled on Friday that interest rates would be lowered at some point soon, rallying stock markets. On Monday, markets fell flat.

Wall Street

US stock markets experienced a slight decline following a strong rally that was sparked by signals from Federal Reserve Chair Jerome Powell about a possible easing of monetary policy. The earlier optimism was driven by hopes for an interest rate cut, but investors are now adopting a more cautious approach as they await key economic data, including the Fed's preferred inflation gauge and a jobs report.

The Dow Jones Industrial Average was down by around 200 to 250 points, with losses cushioned by gains in Nvidia and Intel stocks. Market sentiment remains cautious as investors look for confirmation from upcoming data before fully committing to expectations of a rate cut.

Stocks fall flat after interest rate announcement rally

without moving markets. So let's go back in time to Friday. All three major indices finished up at least 1.5%, as Fed Chair Jerome Powell signaled monetary policy could be eased starting next month. Today, though, have you checked your 401k? The markets, they pulled back just a little bit. This week, new data on personal consumption expenditures is expected, which is a strong inflation gauge for the central bank. So let's talk to CBS News Money Watch correspondent, Kelly O'Grady, joining us from New York. Kelly, why are the markets showing kind of a flatter experience today over Friday's rally? It's a little bit of a reality check after that big boost you saw following Chair Powell's comments and the hint that we are getting that September interest rate cut that I don't care if you're a company or a consumer, a lot of folks are hoping for. And so you mentioned it. We've got inflation data that's coming out on Friday. In fact, it's the Fed's preferred inflation gauge, the PCE. And so some of the investors that I'm talking to are saying, look, we're really excited about a rate cut. But before September 17, we have a lot of economic data that is going to come out, one of them being the inflation gauge that's coming later this week. We're going to get another jobs report coming in the next few weeks. So it was a little bit of tempering of that optimism, that knee-jerk reaction of, great, September, we're maybe going to get a rate cut. It's looking likely. But wait, we do have a number of data points that are going to come into play. So let's not rejoice just yet. And what I will note is the Dow is down around 200 to 250 points last that I looked. It's not crazy, but it would be down more if it weren't for Nvidia and Intel, which are really propping up some of what we would have seen more losses. But again, it's just a little bit of tempering of some of that optimism we saw on Friday.

Kilmar Abrego Garcia is back in ICE custody and is facing deportation to Uganda, the Department of Homeland Security says, after he was released from criminal custody last week.

Baltimore

Abrego Garcia in ICE custody, court blocks immediate deportation

Ukrainian President Volodymyr Zelenskyy said he will meet with the U.S. and other countries this week to discuss a potential meeting with Russian President Vladimir Putin aimed at reaching a ceasefire.

Kyiv

Ukraine Invasion

Zelenskiy say he will meet with U.S., others on potential Putin talks

U.S. President Donald Trump says Chicago could be the next city to see National Guard deployment, sparking strong opposition from Mayor Brandon Johnson and Governor JB Pritzker, who argue crime is already falling and federal intervention is unnecessary.

Chicago

Trump threatens to send National Guard troops to Chicago

Four journalists working with Reuters, Al Jazeera and others were killed in explosions at a Gaza hospital. Gaza officials blame Israeli drone strikes, though CBS News has not independently verified the claims.

Jerusalem

Middle East Conflict

Four journalists reported dead after Gaza hospital blasts

U.S. National Guard troops patrolling the streets of Washington D.C. as part of what President Donald Trump said was his crackdown on crime began carrying weapons on Sunday night, two officials said.

Washington

National Guard patrolling Washington DC begin carrying weapons

In a visit to Kyiv, Prime Minister Mark Carney affirmed Canada’s support for Ukraine and committed to sending soldiers if a ceasefire with Russia is reached.

Carney in Kyiv pledges support, possibly troops for Ukraine

The Pickett Fire is growing in California's Napa County, prompting new evacuations as it threatens homes and wineries. The flames, fueled by scorching temperatures and dry conditions, are being battled by hundreds of first responders.

Napa Valley

Evacuations ordered in California as heatwave fuels wildfire

Democrats are pushing back against President Trump's plan to send the National Guard to more cities, including Chicago, New York and Baltimore, as troops continue to patrol Washington, D.C. State and local leaders say they have crime under control.

Democrats slam Trump's plans to send National Guard to more cities

Beef prices are at record highs with the average price of a pound of ground beef topping $6. Lisa Rozner reports on what's causing prices to soar.

Why U.S beef prices are soaring

A defiant Ukraine marked its independence from the former Soviet Union Sunday amid more fighting with Russia. Chris Livesay reports on how world leaders joined in, voicing their support.

Ukraine marks its Independence Day as war with Russia continues

The boats are produced by unknown Turkish companies and are then sent disassembled in multiple shipments to avoid suspicion in what authorities say is for the sole purpose of trafficking migrants across the English Channel.

Sofia

Inflatable boats used for migrant trafficking seized

Less than 24 hours after he was released from jail, Kilmar Ábrego García was told that U.S. immigration officials plan to deport him to Uganda. The Salvadoran national, who has been living illegally in the U.S. since about 2011, was wrongly deported to his home country earlier this year.

Maryland

Kilmar Abrego Garcia told he may be sent to Uganda

Erik and Lyle Menendez remain behind bars, their hopes for release dashed by two separate parole boards more than three decades after murdering their parents. Elise Preston reports.

Los Angeles

Erik and Lyle Menendez denied parole

Tourism in Las Vegas is slumping this summer, costing the city billions. That could signal trouble ahead for the U.S. economy. Andres Gutierrez has new details.

Las Vegas

Las Vegas tourism slumps this summer, signaling trouble for U.S. economy

Texas Republicans took a victory lap after an early morning vote Saturday that sought to give their party an edge during the 2026 midterms. Democrats in Texas plan to challenge the legality of the new congressional map, saying it dilutes the power of minorities.

Austin

Texas Republicans take victory lap after redistricting vote

Israel has called the United Nations' declaration of famine in parts of Gaza an "outright lie," but multiple U.N. bodies, more than 100 humanitarian groups, and several of Israel's own allies have warned for months that the war is causing starvation among civilians.

Tel Aviv-Yafo

Israel denies U.N.'s declaration of famine in parts of Gaza

U.S. President Donald Trump says he will impose sanctions on Russia if it fails to reach a peace deal in Ukraine within two weeks. But Ukrainian President Volodymyr Zelenskyy says Russia’s ongoing attacks on his country show that President Vladimir Putin is not interested in peace.

Putin’s not interested in peace talks, Zelenskyy says

Lyle Menendez was denied parole late Friday night following a day-long hearing in California, just one day after his brother Erik's parole appeal was also rejected. The brothers have been in prison since 1996 for killing their parents in what they say was an act of self-defense.

Both Menendez brothers denied parole

At least five people are dead and dozens are injured after a tour bus traveling from Niagara Falls flipped over on the New York State Thruway near Pembroke, New York.

Pembroke

Western New York bus crash kills at least five people

Federal agents searched former Trump adviser-turned-critic John Bolton's home on Friday morning. President Donald Trump denied knowing about the investigation, which is related to his handling of classified documents.

Bethesda

FBI raids former Trump adviser John Bolton's home, office

The FBI searched former national security adviser John Bolton's house in Bethesda, Maryland, early Friday morning, the bureau confirmed to CBS News.

FBI raids former Trump adviser John Bolton's home, D.C. office

Kilmar Abrego Garcia, the Maryland construction worker deported to El Salvador and then returned to the U.S. on smuggling charges, has been released from prison in Tennessee, his attorneys say.

Nashville

Kilmar Abrego Garcia released from jail in Tennessee

A bus with more than 50 people on board rolled over in New York and several deaths are being reported, officials confirm. CBS News' Jericka Duncan reports.

Tour bus crash in New York causes 'several fatalities'

Attorneys general in 14 states and Washington, D.C., accuse TikTok of designing its app to keep users hooked. Court-released edited video shows some company staff discussing the toll it can take on children and teens.

TikTok faces lawsuits over mental health risks

A parole board rejected Erik Menendez's request for release, saying he has not shown proper remorse for killing his parents 36 years ago. His brother, Lyle Menendez, faces his own hearing today (August 22).

Erik Menendez denied parole after California hearing

Russia carried out one of its largest aerial attacks of the year on Ukraine. The strikes killed at least one person and injured 15, marking Russia’s third-largest drone attack and eighth-largest missile assault this year.

Russia launches largest strike in weeks on Ukraine

The U.S. is sending three warships to the waters of Venezuela as part of a major counter-narcotics operation, a White House official confirms. CBS News senior national security correspondent Charlie D'Agata reports.

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