Wall Street indices traded in a narrow range on Monday, awaiting Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium later this week.
All attention will be focused on whether Mr. Powell will hint at a potential interest rate cut, particularly given some signs of a slowdown in the labor market and consumer price inflation.
Markets largely expect the Fed to cut rates by 25 basis points in September. However, solid data on producer price inflation for July has cast doubt on a rate cut next month, particularly in the context of concerns about the inflationary impact of tariffs imposed by Donald Trump.
So far, Jerome Powell has remained very vague about future interest rate cuts, citing increased uncertainty related to tariffs and the persistent strength of the labor market.
This week, attention will also be on the quarterly results of several major retailers, including Walmart (NYSE:WMT), Target Corporation (NYSE:TGT), Home Depot, and TJX Companies Inc (NYSE:TJX).
These results, particularly those from the number one retailer Walmart, a member of the Dow Jones, are expected to provide further insights into the health of American consumers, especially in the context of potential disruptions to spending and supply due to tariffs imposed by Trump.
The evolution of the Dow Jones and other US indices will also depend on the Trump administration's attempts to end the war between Russia and Ukraine, following the American president's meeting with Ukrainian President Volodymyr Zelensky and several European leaders on Monday.
Mr. Trump described this meeting as productive and stated that he would now attempt to organize a meeting between Mr. Zelensky and Russian President Vladimir Putin, which could pave the way for trilateral talks aimed at a comprehensive peace agreement.
Finally, it should be noted that the Dow Jones and other US indices are showing a slight decline at the time of writing this article, suggesting a red opening later today.
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