Home Depot Earnings Put Retail in Focus 18/08/2026
Market Wrap
US stocks finished lower on Monday as rising oil prices and renewed Middle East tensions weighed on risk appetite.
The S&P 500 fell 0.5% to 7,745.06, while the Nasdaq Composite declined 0.3% to 26,644.91. The Dow Jones Industrial Average dropped 273 points, or 0.5%, to close at 53,459.78.
Energy markets moved sharply higher as uncertainty around the US-Iran conflict returned to focus. West Texas Intermediate crude climbed 2.6% to $84.50 a barrel, while Brent gained 2.7% to $90.87. The move also pushed the 30-year Treasury yield to its highest level since June 2007, adding pressure to equities.
Micron Technology (MU) was a notable outperformer, gaining 4% after Commerce Secretary Howard Lutnick said the Trump administration does not support Apple (AAPL) sourcing memory chips from China.
US stock futures moved lower early Tuesday as oil extended its advance following the expiration of the US-Iran ceasefire. Negotiations between the two sides have stalled, while President Donald Trump warned that Oman could face military action if it obstructs US objectives in the region.
Attention now turns to July import and export prices, housing starts and pending home sales for further clues on inflation and the housing market. Home Depot (HD) is also scheduled to report second-quarter earnings before the opening bell.
Volatility Hits 2026 Low as Risks Build
Wall Street’s fear gauge has fallen to its lowest level of the year, but strategists warn the calm may be masking growing risks beneath the surface.
The Cboe Volatility Index (VIX) touched 14.2 on Friday as the S&P 500 remained close to record highs, reflecting strong investor confidence after weeks of gains and softer inflation data. However, analysts say such low volatility could signal complacency just as markets enter a historically more turbulent period from mid-August through October.
Geopolitical uncertainty remains elevated, with the US-Iran conflict and Strait of Hormuz impasse still unresolved. At the same time, longer-term Treasury yields remain near cycle highs despite softer economic data, suggesting bond investors remain concerned about inflation and the outlook for monetary policy.
Strategists are also watching signs of pressure on US consumers after July retail sales unexpectedly declined. Combined with persistent equity inflows and low demand for protection, the setup could leave markets vulnerable if a new geopolitical, inflation or growth shock emerges.
The message from Wall Street is not that a correction is imminent, but that unusually calm markets near record highs may be underpricing the risks still building in the background.
Stocks on the Move
- Alibaba (BABA): Shares rose nearly 1% after Reuters reported that the company is preparing to sell its Lingxi Games business to private-equity firm Trustar Capital in a deal valued at more than $2 billion.
- Memory Chip Stocks (SNDK, WDC, MU, STX): Shares moved higher after US Commerce Secretary Howard Lutnick said the Trump administration opposes Apple (AAPL) sourcing memory chips from China. Sandisk jumped 10%, Micron gained 6%, Western Digital added 5% and Seagate rose 2%.
- Intel (INTC): Shares climbed nearly 4% after CEO Lip-Bu Tan disclosed the purchase of more than 105,000 shares at $95 each, according to an SEC filing.
- SoFi Technologies (SOFI): Shares edged higher after Piper Sandler initiated coverage with an overweight rating, citing an attractive valuation and the company’s expanding product portfolio.
- Okta (OKTA): Shares gave back early gains despite a Wells Fargo upgrade to overweight from equal weight. The bank said identity security is becoming a higher spending priority for businesses, which could support demand for Okta’s products.
Watchlist: SOFI, HD, WDC, MU, AAPL, INTC, BABA, BIDU, VNET, OKTA, SNDK
Key Economic Events Today
Economic Data (EST)
- 08:30 AM — USD Building Permits, Housing Starts
- 08:30 AM — USD Import Prices
- 09:15 AM — USD Industrial Production
- 10:00 AM — USD Pending Home Sales
Earnings
Before Market Open: Home Depot (HD), VNET Group (VNET), Baidu Inc., Ames Sports (AS), Klarna Group (KLAR)
After Market Close: Keysight Technologies (KEYS), Toll Brothers (TOL)
