US Stock Market: Little Change Amid Geopolitical Tensions and Upcoming Fed Signals

Market Overview

US stocks closed the session little changed on Monday, August 18, as investors turned their focus toward a high-stakes US-Ukraine meeting and a significant Federal Reserve speech that could define interest rate outlooks.

The S&P 500 (^GSPC) fell just below the flatline, while the Dow Jones Industrial Average (^DJI) declined nearly 0.1%, concluding a second consecutive winning week for major indexes.

Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) managed to achieve slight gains.

Geopolitical Tensions

Geopolitical issues were front and center as Ukrainian President Volodymyr Zelensky met with President Trump in Washington, D.C. The discussion revolved around the ongoing conflict with Russia and the pressure Zelensky faces to accept a peace deal that could compromise Ukraine's stance.

This meeting follows Trump’s recent encounter with Russian President Vladimir Putin at their Alaska summit, further intensifying market focus on regional stability.

Federal Reserve Insights

Markets are also gearing up for Jerome Powell's address at the Jackson Hole symposium on Friday. This speech is expected to provide crucial insights into upcoming monetary policy, particularly following last week's inflation and retail data that affected Wall Street's outlook for potential rate cuts.

Investors are particularly attentive to the release of minutes from the Fed's July meeting this Wednesday, which will precede Powell's crucial comments.

Retail Earnings and Consumer Health

As the second quarter earnings season winds down, retailers are set to report earnings that will shed light on consumer spending health, with Walmart (WMT), Target (TGT), Home Depot (HD), and Lowe's (LOW) scheduled to present later this week.

On Monday, companies like Palo Alto Networks (PANW) and Blink Charging (BLNK) were on the earnings docket, and recent reports have leaned positive overall.

Stock Movements

Shares of Intel (INTC) fell after reports emerged that the Trump administration is considering acquiring a 10% stake in the chipmaker, down nearly 4% during the session. In contrast, shares of TeraWulf (WULF) surged nearly 11% as Google announced a 14% equity stake in the company to help finance a data center expansion.

Additionally, Danish pharmaceutical giant Novo Nordisk (NVO) saw a share increase of over 5% following their announcement to offer diabetes drug Ozempic at a significantly reduced price for cash-paying patients.

Bitcoin and Commodities

In the cryptocurrency realm, Bitcoin (BTC-USD) extended its declines, dropping as much as 2% to approx $116,000 after reaching record highs above $123,500 last week. Ether (ETH-USD) also declined by 3%.

In commodities, oil prices edged higher following geopolitical developments, with West Texas Intermediate (CL=F) prices climbing over 1% to around $63.54 per barrel, and Brent crude (BZ=F) also increasing to above $66.

Looking Ahead

As the week progresses, emerging data on consumer sentiment and further earnings reports are likely to shape investor strategies. The relationship between earnings growth amid various economic pressures and stock prices remains a critical focal point for market participants.