Producers of metals and other raw materials fell as the U.S. dollar rose sharply against other currencies in the wake of inflation data. Consumer price index rose 2.7% in June from a year earlier, but one brokerage said an increase in goods prices could have tied central bankers' hands.

The dollar rose as top-line inflation figures landed in line with expectations, but under the surface, rising prices for some goods suggested tariffs could drive further price increases ahead.

Treasury yields change little following last week's increase as inflation is expected to have accelerated in June and trade wars heat up. Economists surveyed by WSJ expect June CPI, due tomorrow, to rise to 2.