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Markets, Stocks

U.S. Stock Futures Fall as Attention Turns to Jackson Hole and Zelensky Meeting

August 18, 2025 OnEquity

U.S. stock index futures edged lower Monday, consolidating after last week’s gains as investors looked ahead to a meeting between Ukraine President Volodymyr Zelensky and U.S. President Donald Trump in Washington, alongside the closely watched Jackson Hole Symposium.

At 05:35 ET (09:35 GMT), Dow Jones Futures slipped 33 points, or 0.1%, S&P 500 Futures declined 9 points, or 0.1%, and Nasdaq 100 Futures dropped 34 points, or 0.1%.

Wall Street’s main indices posted a second consecutive week of gains, with the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite each reaching fresh record highs at some point last week.

Zelensky Heads to Washington

Zelensky is scheduled to meet Trump in Washington on Monday to discuss the framework of a potential peace agreement. Reports suggest Kyiv may face pressure to cede control of eastern regions, including Donetsk and Luhansk, in exchange for a Russian withdrawal from parts of Kherson and Zaporizhzhia.

Zelensky, joined by several European leaders, has reiterated his support for a “swift and reliable” resolution to the conflict while insisting that Russia must end the war it initiated. Trump stated on Sunday that Zelensky could end the war with Russia “almost immediately” by conceding to Moscow’s demands.

Powell’s Jackson Hole Speech in Focus

The key economic event this week will be Federal Reserve Chair Jerome Powell’s address at the Jackson Hole Symposium on Friday, which investors expect will provide greater clarity on monetary policy.

Markets are currently pricing in an 83% probability of a 25-basis-point rate cut in September, according to CME FedWatch, following softer July payroll and consumer inflation data. However, last week’s stronger producer price data tempered expectations of a larger reduction.

Retail Earnings to Wrap Up Q2 Season

Several major retailers will report second-quarter results this week, concluding what has been an overall solid earnings season. Walmart (WMT) and Target (TGT) will be in the spotlight, alongside Home Depot (HD), Lowe’s Companies Inc. (LOW), and TJX Companies (TJX). These updates will offer fresh insights into U.S. consumer demand amid concerns that tariffs imposed by Trump could weigh on spending.

So far, about 90% of S&P 500 companies have reported June-quarter results, with 81% exceeding expectations, according to FactSet. Other key companies reporting this week include Workday (WDAY), Alibaba (BABA), Baidu (BIDU), Palo Alto Networks (PANW), and Analog Devices (ADI).

Oil Prices Rebound

Crude prices rose Monday, recovering after last week’s declines, as concerns over Russian supply eased following Trump’s meeting with Putin.

At 05:35 ET, Brent crude futures were up 0.6% at $66.24 a barrel, while U.S. West Texas Intermediate futures gained 0.8% to $62.46 a barrel.

Both benchmarks had dropped nearly 1.5% on Friday and closed the week lower ahead of the U.S.–Russia discussions. Following the talks, Trump decided not to pursue additional measures targeting Russian oil exports.

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