Traders on the floor of the New York Stock Exchange on August 4, 2022.
Source: NYSE
Stock futures rose slightly in overnight trade Thursday as traders awaited a key policy speech from Fed Chairman Jerome Powell for guidance on future interest rate cuts.
Futures on the Dow Jones Industrial Average gained 35 points. S&P 500 futures and Nasdaq 100 futures rose 0.1% and 0.2%.
The Fed chairman, set to speak at 10 am ET from the central bank’s annual conclave in Jackson Hole, Wyoming, is expected to signal that it is appropriate for the central bank to start lowering interest rates soon, with limited indications about the magnitude and frequency of reductions.
“Powell is expected to lay the groundwork for the Fed’s first rate cut in four years,” said Adam Turnquist, chief technical strategist at LPL Financial. “Signs of easing price pressures and cooling economic growth will be enough for policymakers to start lowering their target rates.”
Betting market in the quarter percentage point Cut in 17-18. September meeting, and leaves open about a 1-in-4 chance for half a percentage point red, according to FedWatch CME Group. Minutes from the July session show a “majority” of members voted for the September cut.
On Thursday during the Jackson Hole speech, stocks were pressured by the rise in Treasury yields. The S&P 500 fell 0.9%, while the tech-heavy Nasdaq Composite fell 1.7%, having its worst day since August 5. The blue-chip Dow lost 177 points.
The Dow and S&P 500 are still up modestly this week. However, the Nasdaq is down 0.1% week to date, poised to post its fifth negative week in six.
