U.S. stocks shifted on Tuesday as investors rotated into blue-chip names and moved out of tech ahead of the Jackson Hole Symposium. Markets also reacted to fresh retail earnings and geopolitical news.
At 11:15 a.m. ET, the Dow Jones Industrial Average gained 95 points, or 0.2%. The S&P 500 fell 23 points, or 0.4%, while the NASDAQ Composite dropped 245 points, or 1.1%.
Jackson Hole in Focus
Investors are awaiting the Federal Reserve’s Jackson Hole meeting later this week. All eyes are on Fed Chair Jerome Powell, who may provide signals about future policy decisions.
Fed Governor Michelle Bowman, who pushed for a rate cut at last month’s meeting, is expected to speak Tuesday. Futures markets now price in an 83% chance of a quarter-point cut at the Fed’s September meeting.
Fresh housing data showed U.S. single-family housing starts rose 2.8% in July, while permits for future construction increased 0.5%. Still, higher mortgage rates continue to weigh on buyers.
Zelensky Meets Trump and European Leaders
Geopolitics also influenced sentiment. Ukraine’s President Volodymyr Zelensky met with U.S. President Donald Trump and several European leaders in Washington.
Trump said he will attempt to arrange a meeting between Zelensky and Russian President Vladimir Putin, possibly opening the door to trilateral talks. Trump also promised U.S. security guarantees for Ukraine, though details remain unclear. Zelensky said guarantees should be finalized within 10 days.
However, a peace deal remains uncertain. Russia continues to demand control over parts of Donbas, which Ukraine is unwilling to concede.
Earnings Spotlight: Home Depot, Intel, and Palo Alto Networks
Investors turned their focus to earnings.
- Home Depot (NYSE: HD) reported a 1% rise in comparable sales for Q2. Consumers, however, are cutting back on larger purchases. Shares climbed 3.5%.
- Intel (NASDAQ: INTC) stock gained 8% after SoftBank (OTC: SFTBY) agreed to invest $2 billion in the chipmaker to support new U.S. manufacturing projects.
- Palo Alto Networks (NASDAQ: PANW) surged after forecasting fiscal 2026 revenue above estimates, citing strong demand for AI-powered cybersecurity solutions.
More reports are due this week from Lowe’s (NYSE: LOW), Walmart (NYSE: WMT), Target (NYSE: TGT), Baidu (NASDAQ: BIDU), Workday (NASDAQ: WDAY), and Analog Devices (NASDAQ: ADI). These results will offer new insights into the state of the American consumer.
Oil Prices Slip After Ukraine Talks
Crude oil prices edged lower as traders weighed the possibility of three-way peace talks that could ease sanctions on Russian crude.
At 11:15 a.m. ET, Brent futures fell 0.7% to $66.17 a barrel. U.S. WTI futures declined 0.8% to $62.16 a barrel.
Both benchmarks had risen nearly 1% on Monday after U.S. Trade Adviser Peter Navarro warned that India’s purchases of cheap Russian crude were helping finance the war.
