U.S. stock futures dipped slightly on Tuesday as investors awaited earnings from Home Depot and comments from Federal Reserve officials. Meanwhile, attention remains on efforts to resolve the conflict in Ukraine, following the latest Trump-Zelensky meeting, and on Palo Alto Networks’ encouraging guidance.
Trump-Zelensky Talks in Washington
The search for peace in Ukraine continues after U.S. President Donald Trump and Ukrainian President Volodymyr Zelensky met Monday in Washington.
The discussion, aimed at ending the long-running war between Russia and Ukraine, ended on an optimistic note, a stark contrast to the heated exchanges during their previous meeting.
Trump stated that the U.S. would help guarantee Ukraine’s security but did not clarify the specifics of such guarantees. This came after a Financial Times report suggested Ukraine could offer to buy $100 billion of U.S. weapons, funded by European aid, in exchange for security assurances.
Trump also mentioned the possibility of trilateral talks with Russian President Vladimir Putin, following his recent meeting with Putin in Alaska.
Despite the hopeful tone, a peace agreement remains distant, particularly as Putin shows little willingness to agree to a ceasefire. The most contentious issue remains Russian-occupied territory, with Ukraine seeking to reclaim its lands while Russia reportedly demands full control of the remaining Donbas region.
U.S. Futures Dip Ahead of Retail Reports
At 02:45 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 signals on upcoming policy moves.
Fed Governor Michelle Bowman, one of last month’s dissenters favoring a rate cut, is scheduled to speak later today. Markets currently reflect an 83% chance of a 25-basis-point rate reduction at the Fed’s September meeting.
Home Depot Leads Retail Earnings
Wall Street’s focus this week is on big-box and home improvement retailers. Home Depot (NYSE:HD) kicks off earnings later Tuesday, followed by Lowe’s (NYSE:LOW), Target (NYSE:TGT), and Walmart (NYSE:WMT). Analysts expect Home Depot to report a 5.1% revenue increase for the second quarter, up from 0.6% last year, according to LSEG data.
Tariffs remain a concern, even though more than half of Home Depot’s goods come from North America. The company has emphasized supply chain diversification and indicated on its last earnings call that it would not pass tariffs onto prices, though some products may be discontinued.
Palo Alto Networks Impresses
Palo Alto Networks (NASDAQ:PANW) posted strong results after Monday’s close and issued a robust fiscal 2026 forecast, highlighting growing demand for AI-powered cybersecurity solutions. Its shares rose 5% in premarket trading.
The company projected annual revenue between $10.48 billion and $10.53 billion, exceeding analysts’ $10.43 billion estimate. Adjusted earnings per share were expected at $3.75–$3.85, above the $3.67 forecast.
Palo Alto also announced that founder and CTO Nir Zuk has retired after more than 20 years, with Chief Product Officer Lee Klarich stepping into the CTO role and joining the board.
Oil Prices Retreat on Peace Hopes
Crude prices fell as traders assessed the potential for trilateral talks to end the war in Ukraine, which could lift sanctions on Russian oil. At 02:45 ET, Brent futures fell 0.4% to $66.35 a barrel, and WTI slipped 0.4% to $62.44.
“There was no critical breakthrough. It appears the next step is a meeting between Zelensky and Putin, possibly within two weeks,” ING analysts said in a note.
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