US stocks open mixed on retail earnings; Europe edges lower amid inflation, tech concerns

The cautious tone followed Tuesday’s session, where the Dow managed an intraday record on the back of Home Depot’s strong earnings, while the S&P 500 and Nasdaq closed lower, pressured by weakness in technology shares.

US stocks opened little changed on Wednesday as investors parsed a mixed set of retail earnings and awaited the Federal Reserve’s July policy meeting minutes for clues on the path of interest rates.

The Dow Jones Industrial Average rose 69 points, or 0.2%, while the S&P 500 slipped 0.1% and the Nasdaq Composite fell 0.3%.

Retail names were in focus. Target slumped more than 10% after posting another quarter of declining sales and announcing that longtime CEO Brian Cornell will step down in February, to be replaced by chief operating officer Michael Fiddelke. In contrast, Lowe’s gained nearly 3% after beating quarterly earnings expectations and unveiling an $8.8 billion deal to acquire Foundation Building Materials. Estée Lauder slid 7% after issuing cautious fiscal 2026 guidance, citing tariff-related headwinds that could dent profitability by about $100 million.

The cautious tone followed Tuesday’s session, where the Dow managed an intraday record on the back of Home Depot’s strong earnings, while the S&P 500 and Nasdaq closed lower, pressured by weakness in technology shares.

Attention now turns to the Fed’s July meeting minutes, due later in the day. While policymakers held rates steady, dissent from Governors Christopher Waller and Michelle Bowman marked the first double dissent since 1993. Markets are pricing in an 85% chance of a September rate cut, according to CME’s FedWatch tool, with Chair Jerome Powell’s Jackson Hole speech on Friday expected to be a key signal.

“While there are some hot spots in this month’s inflation reading, it’s probably not enough to deter the doves on the committee,” said Andrzej Skiba, head of BlueBay U.S. Fixed Income at RBC Global Asset Management.

European markets trade mixed

Across the Atlantic, European equities were subdued after recent gains. The UK’s FTSE 100 touched a fresh record high, buoyed by consumer and healthcare stocks, even as July inflation rose to 3.8%, its highest in 18 months. The pan-European STOXX 600 slipped about 0.2 to 0.3% from a five-month peak, dragged lower by technology and defence stocks.

Defence names fell as investors priced in hopes of a de-escalation in Ukraine, while tech mirrored Wall Street’s weakness. On the upside, Convatec jumped over 5% after launching a $300 million buyback, and Ithaca Energy rallied nearly 9% on stronger production guidance.