U.S. stock futures slipped slightly Tuesday as investors awaited Home Depot’s earnings report and remarks from Federal Reserve officials. Meanwhile, attention remains on efforts to end the war in Ukraine following the Trump-Zelensky meeting, alongside encouraging guidance from cybersecurity firm Palo Alto Networks.
Trump-Zelensky Talks in Washington
Peace efforts in Ukraine continue after U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky met Monday in Washington.
The discussion, aimed at ending the prolonged conflict between Russia and Ukraine, concluded on an optimistic note, contrasting sharply with previous tense interactions between the two leaders.
Trump said the U.S. would help ensure Ukraine’s security but did not provide specific details. This comes after a Financial Times report suggesting Ukraine might purchase $100 billion in U.S. weapons, funded by European aid, in exchange for security guarantees.
Trump also raised the possibility of trilateral talks with Russian President Vladimir Putin, following his recent meeting with Putin in Alaska.
Despite the positive tone, a peace agreement remains distant, especially since Putin has shown little willingness to accept a ceasefire. The key sticking point remains territories occupied by Russia, which Ukraine seeks to reclaim, while Russia reportedly demands full control over the Donbas region to end the war.
U.S. Futures Dip
As of 2:45 a.m. ET, S&P 500 futures were down 10 points (-0.2%), Nasdaq 100 futures fell 45 points (-0.2%), and Dow futures lost 50 points (-0.1%). Investors are cautious ahead of Federal Reserve speeches at the Jackson Hole symposium, looking for clues on upcoming monetary policy.
Federal Reserve Governor Michelle Bowman, a dissenting voice in favor of a rate cut last month, is scheduled to speak later Tuesday. Markets currently reflect an 83% probability of a 25-basis-point rate reduction at the Fed’s September meeting.
Home Depot Kicks Off Retail Earnings
This week, Wall Street turns its focus to major retailers and home improvement chains. Home Depot (NYSE:HD) reports earnings Tuesday, followed by Lowe’s (NYSE:LOW), Target (NYSE:TGT), and Walmart (NYSE:WMT). Analysts expect Home Depot’s second-quarter revenue to rise 5.1%, compared with 0.6% last year, according to LSEG data.
Tariffs remain a factor, though more than half of Home Depot’s products come from North America. The company has highlighted supply chain diversification and indicated in its last earnings call that it would not pass tariff costs onto customers, though some items may be discontinued.
Palo Alto Networks Posts Strong Forecast
Palo Alto Networks (NASDAQ:PANW) reported solid earnings after Monday’s close and issued strong guidance for fiscal 2026, citing growing demand for AI-powered cybersecurity solutions. Shares rose 5% in pre-market trading.
The company expects annual revenue between $10.48 billion and $10.53 billion, surpassing analysts’ average estimate of $10.43 billion. Adjusted earnings per share are projected between $3.75 and $3.85, above the consensus of $3.67.
Palo Alto also announced that founder and CTO Nir Zuk has retired after more than 20 years. Chief Product Officer Lee Klarich will assume the CTO role and join the board of directors.
Oil Prices Drop on Peace Hopes
Crude prices fell as traders considered the possibility of trilateral talks to end the Ukraine conflict, which could lift sanctions on Russian oil. As of 2:45 a.m. ET, Brent crude was down 0.4% at $66.35 per barrel, while WTI fell 0.4% to $62.44 per barrel.
“There has been no decisive breakthrough. It appears the next step is a meeting between Zelensky and Putin, possibly within two weeks,” analysts at ING wrote in a note.
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