(fxcue news) - U.S. stocks are down in negative territory Monday afternoon with investors assessing the most recent economic data and looking ahead to the readings on consumer price and producer price inflation due later in the week. Worries about escalating tensions in the Middle East weighed as well. Also, the mood is cautious as investors await earnings announcements from top banks this week. After Friday's upbeat jobs data, traders now expect only a quarter-point cut in interest rates at the Federal Reserve's next policy announcement on Nov. 7, with a small chance that the policy rate stays unchanged. On the geopolitical front, Israeli defense forces intensified air strikes targeting Gaza and the Lebanese capital of Beirut simultaneously on the first anniversary of Hamas' cross-border attack in Israel, which triggered the Middle East war. Dozens were killed in air strikes on a mosque and a now defunct school, which were converted as refugee relief shelters Sunday, according to Gaza's Hamas-run health ministry. The Israeli military says Hamas militants were hiding there. The major averages are all notably down in negative territory. The Dow is down 326.89 points or 0.77 percent at 42,025.86. The S&P 500 is at 5,718.97, down 32.41 points or 0.56 percent, while the Nasdaq is down 98.71 points or 0.54 percent at 18,039.14. Apple Inc., Alphabet, Amazon, Meta Platforms, Berkshire Hathaway, Tesla, Walmart, Visa, Mastercard, Netflix, Merck, Accenture, American Express and Nike are down 1 to 3 percent. NVIDIA Corporation is climbing more than 4 percent. Micron Technology, Pfizer, Exxon Mobil and Eli Lilly are also notably higher. Markets are awaiting some Fed speeches today. Minneapolis Federal Reserve President Neel Kashkari is scheduled to participate in a moderated question-and-answer session before the Bank Holding Company Association Fall Seminar this afternoon. Atlanta Federal Reserve President Raphael Bostic is scheduled to moderate a "Dynamic Business of Professional Sports" conversation before the Atlanta Fed's Leading Voice Series at 6 pm ET. St. Louis Federal Reserve President Alberto Musalem is due to speak on the U.S. economy and monetary policy and participate in a moderated conversation before the Money Marketeers of New York University Inc. at 6:30 pm ET. The Federal Reserve is due to release its report on consumer credit in the month of August. Consumer credit is expected to increase by $12.0 billion. Asian stocks rallied on Monday and the dollar hit a fresh seven-week peak on the yen after robust U.S. jobs data signaled economic resilience but prompted trades to pare bets on aggressive Federal Reserve interest-rate cuts. The major European markets closed higher higher on Monday as largely firm Asian markets and the recent upbeat jobs data from the U.S. helped keep investor sentiment fairly positive. Worries about rising tensions in the Middle East and caution ahead of some crucial economic data, including readings on U.S. consumer price inflation, limited markets' upside.