As investors awaited corporate earnings reports from leading retailers and the Federal Reserve’s annual symposium in Jackson Hole, Wyoming, for hints on the U.S. economic picture, Wall Street’s major indexes ended Monday’s trading session essentially unchanged.
Retail Earnings in Focus
Investors are closely monitoring upcoming earnings from Walmart, Home Depot, and Target, which are expected to indicate how trade uncertainty and inflation expectations are influencing consumer behavior. Recent data indicates that consumer mood has decreased as a result of growing fears about inflation, even if retail sales have generally increased.
Jed Ellerbroek, portfolio manager at Argent Capital, said: “It’s a quiet day, with investors getting ready for things to come. The most important event is Powell’s speech, as we expect updated thoughts about how the Fed is viewing this economic environment where inflation is at a fairly high level while unemployment seems to have a rising trend.”
The National Association of Home Builders/Wells Fargo Housing Market Index also fell to its lowest reading since December 2022, signaling softness in the housing sector.
Fed Symposium and Rate Cut Speculations
The Fed’s Jackson Hole conference, running from August 21–23, is attracting significant attention. As the job market softens and inflation rises, investors await Fed Chair Jerome Powell’s comments on the central bank’s policy framework. Although market pricing now indicates a 25 basis point rate drop next month, expectations for additional rate cuts this year have decreased.
Geopolitical Developments
On the geopolitical front, U.S. President Donald Trump and Ukrainian President Volodymyr Zelenskiy met at the White House to discuss the war in Ukraine. The talks came days after Trump’s summit with Russian President Vladimir Putin, which yielded no concrete outcomes. Trump hinted that a trilateral meeting with Putin could be possible. Despite these discussions, the market remained largely unaffected.
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Market Movements
- Dow Jones Industrial Average fell 34.30 points (0.08%) to 44,911.82
- S&P 500 lost 0.65 point (0.01%) to 6,449.15
- Nasdaq Composite gained 6.80 points (0.03%) to 21,629.77
Sector Highlights
- Intel shares dropped 3.66% after reports that the Trump administration is in talks to take a 10% stake in the chipmaker.
- Dayforce surged 26% amid acquisition talks with private equity firm Thoma Bravo.
- Solar stocks rallied, with SunRun up 11.35% and First Solar up 9.69%, following U.S. Treasury tax subsidy announcements for solar and wind projects that were less restrictive than expected.
Advancing issues outnumbered decliners on the NYSE by a 1.16-to-1 ratio, with 185 new highs and 36 new lows. The S&P 500 posted 9 new 52-week highs, while the Nasdaq recorded 80 new highs and 69 new lows.
