Top Five Market Events to Watch This Week (19–23 August)

From Powell’s pivotal speech to key retail earnings and Eurozone data, here’s what could move global markets this week

1. Powell’s Jackson Hole Speech: A Critical Monetary Policy Moment

This week, all eyes will be on Federal Reserve Chair Jerome Powell, who is set to deliver a crucial speech at the Jackson Hole Symposium in Wyoming on Friday. Markets are on edge as recent US economic data suggests a complex mix of softening job growth and stubborn inflation.

Key points to watch:

• The Fed held interest rates steady at 4.25%–4.5% in July.
• Two officials dissented, advocating for rate cuts due to weak labour data.
• Recent jobs reports were revised sharply lower.
• Producer prices unexpectedly jumped, while consumer prices remained relatively contained.

Powell’s speech could either support or contradict market expectations for a rate cut in September. Analysts at ING have called the upcoming September Fed meeting potentially explosive, especially in light of political tension from President Trump, who has been critical of Powell’s reluctance to cut rates.

2. US Retail Giants Set to Reveal Consumer Trends

Several major US retailers will release earnings this week, offering fresh insight into the health of the American consumer.

Retailers reporting include:

• Home Depot (Tuesday)
• Lowe’s
• Target
• Walmart

Despite ongoing tariff concerns and economic uncertainty, July retail sales remained robust, suggesting that consumer demand has held up. However, inflation expectations have ticked higher, and investors will be listening closely to what executives say about trends going into the second half of 2025.

3. Palo Alto Networks Results in Spotlight Post-CyberArk Acquisition

Cybersecurity leader Palo Alto Networks will announce its fiscal fourth-quarter results after markets close on Monday. This is the first earnings report since its $25 billion acquisition of Israeli rival CyberArk Software.

Forecasts include:

• EPS of $0.89
• Revenue of $2.5 billion

The market will be watching how well Palo Alto can integrate such a large acquisition, especially as demand for AI-driven security tools grows. Investors are hoping this bold move by CEO Nikesh Arora will cement Palo Alto’s leadership in the cybersecurity sector.

4. Trump–Zelensky Talks Could Shift Geopolitical Risk

Ukrainian President Volodymyr Zelensky will meet with Donald Trump in Washington on Monday in an attempt to broker a peace deal regarding Russia’s war in Ukraine.

Points of concern:

• Trump has suggested Zelensky could end the war “almost immediately,” raising fears of a settlement skewed in Russia’s favour.
• Zelensky has rejected terms previously suggested by Vladimir Putin, which included ceding the Donetsk region.
• European leaders are expected to join Zelensky in urging a fair resolution.

While markets have largely shrugged off the latest Trump–Putin summit, a sudden breakthrough or escalation could create fresh volatility.

5. Eurozone PMIs to Reveal Impact of Tariffs and Trade Tensions

Preliminary Purchasing Managers’ Index (PMI) data for the Eurozone will be released this week, covering both the manufacturing and services sectors.

Analysts will be watching for signs of:

• Continued pressure on industrial output from US tariffs
• Strengthening defence spending in Europe helping support the manufacturing base
• Potential drag from a strong euro

Early signs point to fading resilience in industrial sectors, which had previously seen a short-term boost from stockpiling before tariffs were enacted.

Conclusion: A High-Stakes Week for Markets and Policymakers

This week could be a turning point for financial markets, with major speeches, earnings reports, geopolitical developments, and economic data all coming to a head. The spotlight is on Jerome Powell, whose tone and guidance could heavily influence US and global equities.

Meanwhile, earnings from US retailers and tech giants will offer real-time insight into consumer behaviour and corporate strategy as inflation and interest rate uncertainty persist.

Investors should prepare for a week of potential market-moving events — and brace for increased volatility across asset classes.

Sources: (Investing.com, Reuters.com)