U.S. stock futures were steady as investors waited for Federal Reserve Chair Jerome Powell to speak at Jackson Hole. His remarks could hint at the future of monetary policy.
Futures for the Dow Jones rose by 50 points, which is about 0.1%. Similarly, S&P 500 and Nasdaq 100 futures also saw small gains of around 0.1%.
In after-hours trading, Intuit’s shares fell nearly 6% despite better-than-expected earnings for the quarter. In contrast, Zoom’s stock rose 5% after it announced strong second-quarter results.
Recent days have not been kind to Wall Street. The S&P 500 faced its fifth consecutive decline, dropping 0.4%. The Nasdaq Composite was down 0.34%, and the Dow fell by 152.81 points or 0.34%.
Traders are keenly anticipating Powell’s speech, which is taking place during the Fed’s annual symposium in Wyoming. Many are hoping for insights into interest rates, and currently, there’s a 75% chance of a quarter-point cut in September, according to the CME FedWatch tool.
Recently, expectations for lower interest rates have energized sectors that missed out on previous rallies. Investors shifted their focus from major tech stocks to smaller companies and value stocks. However, a more cautious stance from Powell might dampen this optimism. He will need to strike a balance in his speech, discussing rates while considering economic growth and inflation.
Jim Caron from Morgan Stanley thinks Powell will advocate for cutting interest rates starting in September, which could uplift the markets. As of Thursday, the main stock indices are facing a tough week: the S&P is down 1.2%, the Nasdaq has lost 2.4%, and the Dow is expected to drop about 0.4%. Interestingly, the S&P 500 Equal Weight Index has remained mostly unchanged this week.
This situation mirrors past economic fluctuations, where investor sentiment greatly impacted market trends. For context, during the 2008 financial crisis, communication from the Fed played a critical role in shaping market expectations. Today’s atmosphere is defined by similar uncertainties, making Powell’s upcoming words crucial for all market participants.
As investors keep a close eye on these developments, user reactions on social media reflect a blend of hope and anxiety. Many are discussing potential impacts on their investments, emphasizing the importance of staying informed in such volatile times.
For more on interest rate forecasts, you can refer to the CME FedWatch tool.
Source link
Breaking News: Markets,Stock markets,Markets,United States,Workday Inc,Zoom Communications Inc,Dow Jones Fut (Sep'25),S&P 500 Fut (Sep'25),NASDAQ 100 Fut (Sep'25),S&P 500 Equal Weight Index,business news
