Trader works on the floor of the New York Stock Exchange, Monday, Aug. 18, 2025. (AP Photo)
US stocks ended Monday’s session largely unchanged as investors braced for a pivotal week shaped by both geopolitics and the Federal Reserve’s next move on interest rates.
The S&P 500 slipped just under the flatline, while the Dow Jones Industrial Average edged down 0.1%. The Nasdaq Composite, supported by technology shares, managed to secure modest gains. The mixed performance came after two consecutive weeks of advances for the major indexes.
Ukraine Talks Capture Market Attention
Geopolitical developments weighed heavily on sentiment. Ukrainian President Volodymyr Zelensky met with US President Donald Trump and European allies in Washington, facing pressure to consider a peace agreement more favorable to Moscow. The talks came on the heels of Trump’s meeting with Russian President Vladimir Putin at the Alaska summit, intensifying speculation about the trajectory of US foreign policy.
Markets are closely watching how negotiations unfold, with concerns that a shift in US backing for Ukraine could ripple across energy and defense sectors.
Fed Chair Powell’s Speech in Focus
While geopolitics set the early tone, investors’ primary focus remains squarely on monetary policy. All eyes are on Federal Reserve Chair Jerome Powell’s address at the annual Jackson Hole symposium on Friday.
Powell’s remarks are expected to provide crucial guidance on the Fed’s path, especially after recent inflation and retail sales data dampened hopes for aggressive rate cuts. The speech could also mark Powell’s final appearance at the gathering as Fed chair, adding weight to his message.
The central bank’s dilemma is clear: balancing easing inflation with a still-resilient economy. Investors are eager for clarity on whether the Fed will proceed with rate cuts later this year or take a more cautious stance.
Before Powell speaks, markets will parse the minutes of the Fed’s July meeting, scheduled for release Wednesday. The document may reveal divisions among policymakers and set the tone for Jackson Hole. With few major economic reports due this week, Fed signals will likely dominate market direction.
Earnings Season Nears Close
Corporate earnings also remain in focus as the second-quarter reporting season draws to a close. On Monday, Palo Alto Networks and Blink Charging were set to announce results. So far, overall earnings have been broadly positive, helping sustain investor confidence.
Later this week, reports from retail giants Walmart, Target, Home Depot, and Lowe’s are expected. These updates are likely to offer deeper insight into consumer spending, a key driver of the US economy.
Intel Shares Retreat on Trump Stake Reports
Among individual movers, Intel shares slipped after reports suggested the Trump administration was considering taking a 10% stake in the chipmaker. The potential investment, first flagged as a possibility through CHIPS Act funding last week, had initially boosted Intel stock. The renewed speculation, however, triggered a wave of uncertainty and profit-taking.
Outlook
With geopolitics intensifying and the Fed’s direction still unclear, Wall Street faces a week of heightened anticipation. Investors will be watching every signal, from central bankers’ remarks to corporate earnings, as they gauge the balance between global uncertainty and domestic resilience.
