S&P500 and Nasdaq 100: US Stocks Slip Today as Traders Await Powell and Retail Earnings

Stocks Slip as Traders Brace for Powell’s Jackson Hole Remarks and Retail Earnings

U.S. equity indexes are edging lower shortly before the close on Monday, with investors in wait-and-see mode ahead of a pivotal speech by Federal Reserve Chair Jerome Powell on Friday.

The Dow shed 60 points, while both the S&P 500 and Nasdaq dipped 0.1%. Caution prevailed as market participants assessed potential outcomes from Powell’s Jackson Hole appearance and parsed geopolitical headlines related to Ukraine-Russia talks.

Will Powell’s Jackson Hole Speech Clarify the Fed’s Next Move?

Fed funds futures reflect high conviction for a September rate cut, with CME data showing nearly 85% odds of a 25 basis point move. However, Evercore ISI’s Krishna Guha warned Powell may refrain from committing to a clear rate path. Instead, he’s expected to balance commentary between job market resilience and persistent inflation, potentially tempering market expectations for aggressive easing.

Eric Teal of Comerica Wealth Management described markets as finely balanced, saying, “Any news, good or bad, could trigger either a strong rally or a deep selloff.” The S&P 500 and Nasdaq are coming off their fourth gain in five weeks, but many investors remain cautious about valuation levels and economic soft spots.

Retail Earnings and Consumer Health in Focus

This week brings a barrage of big-box retailer results, including Walmart, Home Depot, Lowe’s, and Target. Investors are watching closely for commentary around tariffs, inventory levels, and consumer demand trends. Wells Fargo’s Scott Wren warned that these reports could stall recent equity strength, especially if forward guidance points to slowing spending or margin pressure.

Target rose 3% Monday after Evercore ISI named it a tactical outperform ahead of earnings. In contrast, Meta dragged on the broader tech space with a 2.5% loss tied to restructuring news in its AI division.

Stock Movers: GoodRx, Duolingo, and TeraWulf Pop

Notable intraday movers included GoodRx (+36%) after announcing a deal with Novo Nordisk to offer obesity treatments at $499/month. Duolingo jumped 12% on positive analyst coverage, while TeraWulf rallied 13% after Google expanded investment in its New York AI and crypto infrastructure site.

Meanwhile, Antero Resources dropped 6% after a downgrade citing natural gas oversupply concerns, and Meta’s retreat weighed on sentiment across mega-cap tech names.

Market Outlook: All Eyes on Powell and the Consumer

With light trading volumes and little economic data to sway sentiment, the market’s next directional move likely hinges on Powell’s Friday remarks.

A cautious tone could disappoint bulls banking on aggressive cuts, while retail earnings may recalibrate views on U.S. consumer resilience.

Until then, traders are positioning defensively, watching 6,371.00 on the S&P 500 as near-term support and 6502.50 as upside resistance into the close and overnight.

More Information in our Economic Calendar.