US stocks held steady following Monday's market open, as traders kept a close watch on developments surrounding the White House meeting on the war in Ukraine and braced for an influx of retail earnings reports, along with the Federal Reserve's upcoming symposium this week.
The S&P 500 Index showed slight fluctuations, flipping between small gains and losses. Dayforce Inc. led the index, gaining 23%, following reports that Thoma Bravo, a private equity firm, was in talks to acquire the human-resources management software provider.
Meanwhile, the tech-heavy NASDAQ 100 and the Dow Jones Industrial Average remained essentially unchanged. Investors are paying attention to the blue-chip index after it surpassed an intraday record on Friday, though it closed just shy of reaching an all-time high.
The continued market performance came at a time when the top-tier meeting was held at the White House on Monday, between Donald Trump, the US president, and Volodymyr Zelenskyy, President of Ukraine. According to market strategists, there was much at stake regarding any outcomes of this meeting, given the existing war in Ukraine and how these events may affect global financial markets.
Moreover, market participants are also focused on the Federal Reserve's annual Jackson Hole symposium, which Chair Jerome Powell will address later this week. His remarks regarding the future of monetary policy at the US Treasury may be critical in influencing market sentiment.
A deluge of earnings reports from major retailers, including Walmart, Home Depot, Target, and Lowe's, is expected this week, providing critical insights into US consumer spending. The market remains focused on consumer demand's resilience, especially as shifting interest rates continue to influence broader economic conditions.
Although recent economic indicators have revealed a slowdown, including declines in business services activity and a reduction in consumer sentiment, excellent earnings reports have countered some of these fears. According to a report released by Goldman Sachs, US companies performed better than expected, with earnings per share up by 11% over the previous year, compared to the expectations of 4%.
Despite weaker economic data, markets are pricing in an expected rate cut from the Federal Reserve, with Fed funds futures suggesting an 85% chance of a rate cut at the September meeting. Traders are carefully watching any remarks from the Federal Reserve this week to gain insight into the central bank’s next steps.
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