Stock market today: US stocks steady as countdown to Jackson Hole begins

US stocks experienced a steady performance on Monday, following their best week in a year. The S&P 500 (^GSPC) rose 0.1%, while the Dow Jones Industrial Average (^DJI) and the tech-heavy Nasdaq Composite (^IXIC) also gained slightly. This stability comes as investors await Fed Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium on Friday, which could reset rate-cut expectations. The market is consolidating last week’s strong gains, which recouped losses from an early August sell-off. Encouraging inflation and consumer spending data have eased recession fears, leading to a “soft landing” narrative for the economy. Goldman Sachs now sees a lower likelihood of recession. Traders are pricing in a 72% chance of a 0.25% rate cut and a 28% chance of a 0.50% cut in September, according to the CME FedWatch tool. Meanwhile, investors will also monitor the Democratic National Convention, which kicks off on Monday, for insights into presidential nominee Kamala Harris’s policies. Additionally, a slew of retail earnings from companies like Lowe’s (LOW), Target (TGT), Macy’s (M), The TJX Companies (TJX), and BJs (BJ) Wholesale Club will provide further insights into consumer health.

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