By Alex Financials

Markets Take a Breather Ahead of Key Economic Events

The U.S. equity markets opened the week on a cautious note as investors braced for a high-stakes meeting in Washington between President Trump and Ukrainian President Zelenskiy, along with anticipation of the Federal Reserve’s annual Jackson Hole symposium later this week. The Dow Jones Industrial Average ($DJI) ended almost flat, ticking up just 0.1%, while the Nasdaq Composite ($IXIC) slipped by 0.4% and the S&P 500 ($SPX) declined by 0.3%. Anxiety over future Fed moves and a wave of earnings results kept volatility slightly elevated, with the CBOE Volatility Index ($VIX) up 1.8%.

Central Bank in Focus: Cautious Inflation Watch

All eyes are on Chicago Fed President Austan Goolsbee, who struck a cautious tone regarding inflation and upcoming interest rate decisions. Despite whispers of a potential rate cut as early as September, recent rises in services and producer prices have the Fed wanting more evidence before pulling the trigger. Treasury yields rose modestly as traders recalibrated expectations for monetary policy actions.

Earnings Watch: Tech, Retailers, and the “Magnificent 7”

Earnings have continued to surpass expectations for major U.S. companies. The “Magnificent 7” large-cap tech stocks—Amazon ($AMZN), Apple ($AAPL), Alphabet ($GOOGL), Microsoft ($MSFT), Meta ($META), Nvidia ($NVDA), and Tesla ($TSLA)—posted robust earnings per share growth averaging 26% year-over-year in Q2. Notably, investors are awaiting critical reports from retailers Walmart ($WMT), Home Depot ($HD), Target ($TGT), and Lowe’s ($LOW) this week to better gauge consumer confidence and spending.

Movers & Shakers: Stocks Showing Major Moves

After-Hours Gainers

Several notable stocks made significant gains in after-hours trading:

• DIH Holding US, Inc. ($DHAI) surged 56%

• Ryvyl Inc. ($RVYL) rose 37%

• Adaptimmune Therapeutics plc ($ADAP) jumped 21%

• Excelerate Energy, Inc. ($EE) advanced 21%

• ioneer Ltd ($IONR) climbed 13%

Thematic Trends

Solar stocks rallied following new, more lenient tax credit rules: Sunrun ($RUN) jumped 38% since Friday and SolarEdge ($SEDG) gained 19%. Other solar names like Enphase Energy ($ENPH) also posted double-digit increases in premarket action.

In the healthcare sector, Novo Nordisk ($NVO) soared 55% in European trading after the FDA fast-tracked its weight-loss drug Wegovy for liver disease indications, boosting prospects for GLP-1 therapies.

M&A and Company News

• Soho House ($SHCO) announced agreement to go private in a $2.7 billion deal, wrapping up a volatile public run that saw management face pressure from activist investors.

• Bank of America ($BAC) kicked off its 2025 Investor Day, highlighting its commitment to digital transformation and efficiency, though shares ended the session little changed.

Global Perspective: India’s Rally, Europe’s Bonds

Indian equities had a standout session, with the Nifty50 and BSE Sensex jumping over 1% in early trading after Prime Minister Modi announced next-generation GST reforms and S&P Global upgraded India’s credit rating. Auto and cement stocks such as Maruti Suzuki ($MARUTI) and Ultratech Cement ($ULTRACEMCO) led the rally, while top lenders (HDFC Bank, ICICI Bank, Bajaj Finance) surged on the ratings news.

In Europe, government bond yields rose to multi-year highs as countries prepared to increase defense spending, leading to higher projected deficits.

Commodities Update: Gold, Oil

Gold edged down slightly to $3,343 per ounce, with investors seeking clarity on the Fed’s next moves and renewed hopes for inflation containment. Oil remained steady, with Brent crude holding at $79 a barrel, supported by stable geopolitical developments and U.S. policy signals on Russian oil exports.

Looking Ahead: What to Watch

• Jackson Hole Symposium: Fed Chair Powell’s speech will set the tone for global monetary policy.

• Earnings Reports: Key retailers including $WMT, $HD, $TGT, and $LOW could shift the market’s outlook on consumer strength.

• Global Developments: Updates from Ukraine talks and China’s $11 trillion stock market moves remain crucial for sentiment.