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Futures slip: Dow 0.10%, S&P 500 0.15%, Nasdaq 0.16%
Aug 18 (Reuters) - U.S. stock index futures wavered on
Monday, pausing after a recent rally as investors shifted their
focus to earnings from big box retailers and an annual central
bank conference at Jackson Hole, all of which are lined up later
this week.
Geopolitics was also in the spotlight as Donald Trump was
set to meet Ukraine's Volodymyr Zelenskiy and European leaders
to map out a peace deal between Kyiv and Moscow, following the
U.S. President's summit with Russia's Vladimir Putin last week,
which yielded no concrete outcome.
Wall Street's main indexes rallied over the past two weeks,
with the blue-chip Dow hitting an intra-day record high
on Friday, aided by interest rate cut expectations and a
better-than-expected earnings season despite an uncertain trade
environment.
Investors will closely monitor reports from Walmart ( WMT ),
Home Depot ( HD ) and Target ( TGT ) among others, which are
expected this week, to determine how trade uncertainty and
inflation expectations have affected the American consumer.
Data on Friday showed that while retail sales were
increasing broadly as anticipated, consumer sentiment overall
had taken a hit from mounting inflation fears.
"The U.S. earnings season has so far been very robust as it
draws to a close, but updates from Walmart ( WMT ) and Home Depot ( HD ) this
week are likely to be closely watched as investors look for an
indication as to how the US consumer is faring," said AJ Bell's
investment director Russ Mould.
At 05:35 a.m. ET, Dow E-minis were down 47 points,
or 0.10%, S&P 500 E-minis were down 10 points, or 0.15%
and Nasdaq 100 E-minis were down 38.5 points, or 0.16%.
Investors continue to price a 25 basis point cut from the
Federal Reserve next month, although they have lowered their
expectations for another rate cut this year, according to data
compiled by LSEG.
Recent data has also suggested that while U.S. tariffs have
not filtered into headline consumer prices yet, jobs market
weakness could nudge the central bank to take a more dovish
stance.
Markets hope that the Fed's Jackson Hole, Wyoming conference
between August 21 and 23, where Chair Jerome Powell is expected
to speak, could offer more clarity on the economic outlook and
the central bank's policy framework.
On the trade front, the Trump administration widened the
reach of its 50% tariffs on steel and aluminum imports by adding
hundreds of derivative products to the list of goods subject to
the levies.
Among early movers, UnitedHealth ( UNH ) rose 2.7% in
premarket trading, building on its nearly 12% jump in the
previous session.
Crypto stocks such as Strategy and Coinbase
declined about 2% each, tracking a 2.5% drop in bitcoin
prices.
Markets were also assessing multiple deals on the mergers
and acquisitions front.
Dayforce ( DAY ) surged 21.4% after a report said PE firm
Thoma Bravo is in talks to acquire the HR management software
firm, while Soho House ( SHCO ) jumped 13.3% as another report
said a group of investors led by New York-based MCR Hotels is
nearing a deal to take the members' club operator private.
(Reporting by Johann M Cherian in Bengaluru; Editing by
Shinjini Ganguli)