US stocks wavered Monday as traders shifted their attention to a high-stakes meeting between Ukraine’s Volodymyr Zelensky and President Trump in Washington, while a pivotal week looms with a Federal Reserve speech that could define the trajectory for interest rates.
The S&P 500 was flat, the Dow Jones Industrial Average slipped 0.1%, and the Nasdaq Composite nudged above the flat line. Markets come off a second straight winning week for the major indexes.
Geopolitics dominated sentiment as Zelensky, joined by European allies, held talks with Trump in the capital, with Kyiv under pressure to accept a peace deal seen as favorable to Russia. The talks follow Trump’s recent encounter with Russian President Vladimir Putin at their Alaska summit.
Investors are also looking ahead to Jackson Hole, where Fed Chair Jerome Powell will speak on Friday in what could be his last address in his current role. Traders will be scanning for signals on the Fed’s policy path after inflation and retailers’ data tempered hopes for near-term rate cuts last week. The annual gathering is often a focal point for shifts in central-bank thinking, and this year’s discussions come as policymakers weigh a delicate balance between inflation pressures and growth.
Minutes from the Fed’s July meeting due Wednesday will set the stage for Jackson Hole, in a week with limited new economic data.
Second-quarter earnings season is winding down, with Palo Alto Networks and Blink Charging on Monday’s schedule. Results so far have largely been positive, and traders will also be watching for updates from Walmart, Target, Home Depot, and Lowe’s later in the week for fresh readouts on consumer spending.
Stocks also reacted to a separate development as Intel tumbled to session lows after Bloomberg reported the Trump administration was considering a 10% stake in the chipmaker. Last week, Intel shares jumped on reports that CHIPS Act funds could be used to support the company.
outlook and takeaways: Investors appear to be trading a cautious path ahead of Powell’s Jackson Hole remarks and key earnings reads, weighing geopolitics against the potential for the Fed to provide a clearer path toward policy easing if inflation trends permit. If Powell signals a well-communicated, gradual path to rate cuts and consumer spending remains resilient, a more constructive tone could take hold later in the week.
Summary: The week is set to hinge on Powell’s Jackson Hole speech, Fed minutes, and the remaining batch of earnings, all against a backdrop of ongoing geopolitical developments and sector-specific moves like Intel’s stake discussion. A cautious but potentially constructive path for markets hinges on clearer policy signals and continued consumer resilience. Investors remain watching for clues that could spark a broader rotation or renewed momentum as the data flow unfolds.