US stocks ended Monday little changed as traders looked ahead to Federal Reserve Chair Jerome Powell’s highly anticipated speech at the central bank’s annual Jackson Hole symposium, along with a slew of retail earnings.
The Dow Jones Industrial Average slipped 34 points, or 0.08%, to close at 44,911.82. The S&P 500 edged lower by 0.01% to 6,449.15, while the Nasdaq Composite inched up 0.03% to 21,629.77.
Losses in technology names weighed on the market, with Meta Platforms down 2.3% and Microsoft falling 0.6%.
Focus shifts to retail earnings
This week, investors will scrutinise quarterly results from Home Depot, Lowe’s, Walmart and Target for insights into the strength of the US consumer. Analysts warn that tariffs, sticky inflation and slowing job growth could weigh on retail performance.
Jackson Hole in the spotlight
Markets are also fixated on Powell’s address at the Kansas City Fed’s annual gathering of central bankers in Jackson Hole, Wyoming. Scheduled for Friday morning US time, early Saturday AEST, the speech is being described by Yardeni Research as “the most anticipated of his 90 months” as Fed chair.
Futures markets are pricing in an 83% chance of a rate cut at the September policy meeting, according to CME’s FedWatch tool. But Yardeni cautioned that an “unwarranted cut” could fuel a stock market melt-up and a bond market meltdown.
The major indices are coming off their second consecutive positive week, with the S&P 500 and Nasdaq logging gains in four of the past five weeks. Small-caps have outperformed recently on bets of easier monetary policy.
Australian outlook and corporate agenda
The SPI 200 futures are pointing down 23 points, or 0.3%, to 8,874, suggesting a softer local open. On Tuesday, key earnings are due from CSL, BHP Group, HMC Capital, Woodside Energy and Centuria Capital Group.
The Economic Reform Roundtable begins in Canberra, with Prime Minister Anthony Albanese, Treasurer Jim Chalmers and Reserve Bank Governor Michele Bullock all scheduled to speak. Locally, August consumer confidence data is out at 10:30am, while US housing starts and building permits will be released later tonight.
