Stocks trade sideways ahead of political updates, Jackson Hole
US indexes remained stable as investors awaited insights from Chair Powell and President Trump on August 18, 2025. The major indexes fluctuated minimally as geopolitical tensions loomed, particularly regarding Ukrainian President Zelensky's White House visit and his discussion with Trump about a potential meeting with Putin. The Federal Open Market Committee's minutes from July are due for release on Thursday, alongside the Jackson Hole Economic Symposium, where Powell will speak. Markets are currently anticipating an 83% chance of a 25 basis point interest rate cut in September. Historically, Powell's speeches at Jackson Hole have led to market gains, but this year’s economic indicators appear less favorable, with concerns about inflation and a stagnant labor market, as unemployment flatlined at 4.2%. Additionally, major retailers such as Target and Walmart are set to report their earnings, with attention on comments regarding tariffs and consumer pricing.
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