Stocks and Yields Slip as Ukraine Talks and Fed Outlook Drive Markets

U.S. stock futures edged lower Monday, while Treasuries gained, as traders focused on progress toward a potential peace deal for Ukraine and awaited signals from the Federal Reserve on interest rates. Contracts for the S&P 500 slipped 0.1% after the benchmark closed near record highs last week. European equities also eased, with Ukrainian President Volodymyr Zelenskiy in Washington following U.S. President Donald Trump’s summit with Russian President Vladimir Putin.

Investors are also cautious ahead of the Federal Reserve’s annual Jackson Hole retreat later this week. Chairman Jerome Powell’s speech is expected to provide guidance on a possible September rate cut. Money markets currently price in about an 80% chance of a quarter-point reduction.

Treasury yields fell across the curve, with the 10-year down two basis points to 4.29%. Meanwhile, cryptocurrencies pulled back, with Bitcoin (BTC-USD) down 2.1% to $115,178 and Ether (ETH-USD) off 3.8% to $4,302.

Corporate Highlights

• Dayforce (NYSE: DAY) rallied 22% on reports of a potential buyout by private equity firm Thoma Bravo.

• A group of investors agreed to take Soho House & Co. private in a deal valuing the members’ club at $2.7 billion.

• Air Canada (TSX: AC) suspended its financial guidance after a flight attendant strike forced the airline to halt its entire flying schedule.

  

• Novo Nordisk (NYSE: NVO) rose after the FDA approved Wegovy for the treatment of a serious liver disease, ahead of competitor Eli Lilly.

• Advent International offered to acquire U-blox Holding AG, a Swiss positioning chipmaker, in a deal worth 1.05 billion Swiss francs.

• Vestas Wind Systems (CPH: VWS) jumped after new U.S. tax credit guidance for clean energy projects was viewed as less restrictive than anticipated.

Looking Ahead

This week also brings key retail earnings from Walmart (NYSE: WMT), Target (NYSE: TGT), and Home Depot (NYSE: HD), which will provide fresh insight into the health of the U.S. consumer.

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