U.S. Stocks Pause After Gains, Await Retail Earnings and Fed Speech

U.S. stocks closed relatively flat on Monday, with major indices pausing after a week of gains. Investors are awaiting key retail earnings reports and the annual speech by Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium.

The Dow Jones Industrial Average fell 38.79 points, or 0.09%, to 44,907.33. The Nasdaq Composite rose 8.19 points, or 0.04%, to 21,631.17, while the S&P 500 index dipped 0.02% to 6,449.78. Tech giants Meta and Microsoft declined 2.5% and 1%, respectively, weighing on the broader market.

This week, investors will scrutinize earnings reports from major retailers such as Home Depot, Lowe's, Walmart, and Target to gauge the health of U.S. consumers. Concerns over high valuations, tariff policies, and slowing job growth remain focal points for market participants in the second half of the year.

Scott Wren, a senior global market strategist at Wells Fargo Investment Institute, noted that this week's retail earnings could reflect concerns over tariffs, rising inflation, and an anticipated economic slowdown. He suggested that the recent rally in U.S. stocks might stall as a result.

The Federal Reserve's actions will remain a key focus this week, as central bank officials gather in Jackson Hole, Wyoming, for their annual economic policy symposium. Investors will be looking for clues on the path of interest rates.

All three major indices have just completed their second consecutive week of gains, with the S&P 500 and Nasdaq Composite achieving their fourth week of gains in the past five. Small-cap stocks performed exceptionally well last week, as investors bet on an impending rate cut.

Investors are also monitoring the progress of talks between U.S. and European leaders. Multiple European leaders arrived at the White House on Monday afternoon and held multilateral discussions with the U.S. President.

Ukraine's President expressed readiness to end the conflict with Russia through diplomatic means and reiterated Kyiv's hope for a three-way meeting with Moscow and Washington.

The U.S. President stated at the White House, "If everything goes smoothly today, we will hold a three-way meeting, and I believe there will be a significant chance to end the conflict."