Is the market bracing for a consumer squeeze? The verdict is mixed, but caution is the mood of the week. Major indices—the Dow, S&P 500, and Nasdaq—remained just shy of record highs but have edged down as investors eye both the Federal Reserve's Jackson Hole summit and a deluge of big-box retail earnings (Home Depot, Target, Walmart, and Lowe's).
- With retail bellwethers about to report, Wall Street is hunting for evidence on whether higher wholesale and input costs (from tariffs and labor) are trickling into consumer prices or are still being absorbed on corporate balance sheets.
- The FedWatch tool prices in an 83% chance of a September rate cut—an expectation fueled by soft inflation data and signs of a cooling job market.
- Outside the US, European equities inched higher, lifted by Ukraine-Russia peace hopes. Paris stocks gained as defense shares dipped on signs of potential de-escalation.
Even as the rally in AI-linked names (like Novo Nordisk, TeraWulf, and Sunrun) makes headlines, mounting short interest in giants such as Meta Platforms signals growing sector uncertainty.
