United States equities closed little changed on Monday (Tuesday AEST) as investors shifted their attention to a key speech from Federal Reserve Chair Jerome Powell and a busy week of retail earnings.
The Dow Jones Industrial Average fell 34.3 points, or 0.1%, to end at 44,911.8. The S&P 500 edged down 0.01% to 6,449.2, while the Nasdaq Composite added 6.8 points, or 0.03%, to close at 21,629.8.
Attention this week is firmly on earnings reports from major U.S. retailers, including Home Depot, Lowe’s, Walmart and Target, as investors look for signals on the resilience of consumer spending.
Market participants remain cautious about stretched valuations, trade tensions and slowing job growth as the second half of the year unfolds.
The Fed is also set to take centre stage with its annual economic policy symposium in Jackson Hole, Wyoming. Powell’s remarks will be closely watched for signals on the path of interest rates.
According to CME Group FedWatch Tool, futures markets are pricing in an 83.6% chance that the Fed will cut rates at its September meeting.
Despite Monday’s muted performance, the three major benchmarks are coming off two consecutive weeks of gains. Both the S&P 500 and Nasdaq have advanced in four of the past five weeks, while small-cap stocks outperformed last week as investors positioned for potential rate cuts.
On the bond markets, Treasury yields edged higher, with the benchmark 10-year yield up 0.3% to 4.335%, while the 2-year yield climbed 0.4% to 3.769%.
