U.S. Stocks Dip as Traders Await Key Economic Events

New York City, U.S. — U.S. stocks dipped on Monday as the market cooled after a winning week, with traders eyeing key retail earnings and Federal Reserve Chair Jerome Powell‘s upcoming speech at the Jackson Hole summit.

The Dow Jones Industrial Average dropped 30 points, or 0.1%, while the S&P 500 gained nearly 0.1% and the Nasdaq hovered near the flatline. Shares of major retailers like Target and Walmart fell about 2.5% and 1%, dragging down broader market indices.

This week, investors will analyze earnings reports from major retailers for clues about the health of the U.S. consumer amid rising concerns about tariffs, elevated valuations, and slowing job growth. “Retailer earnings reports may reflect tariff concerns and an anticipated economic slowdown,” Wells Fargo senior global market strategist Scott Wren said, suggesting that recent equity rallies might stall.

The Federal Reserve also remains a focal point as members head to Jackson Hole, Wyoming for the annual economic policy symposium. Fed funds futures indicate a roughly 85% probability that the central bank will cut rates at its next meeting in September.

The three major averages recently enjoyed two consecutive weeks of gains, marking the S&P 500’s fourth week of advancements out of the last five. Small-cap stocks performed well last week as investors predicted rate cuts.

Adding to the day’s movement, shares of Soho House surged more than 15% after announcing plans to leave the public market in a $2.7 billion deal led by MCR Hotels. Shareholders will see $9 per share, pointing to an 18% increase from last week’s close.

Conversations surrounding the Fed will be critical this week, especially concerning the future direction of interest rates. Any new developments could sway market sentiment significantly.