August 23 – U.S. stock futures edged up on Friday following a sharp decline on Thursday, as investors prepared for a crucial speech by Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Symposium. Powell is expected to provide insights into the timing and pace of potential interest rate cuts.
Futures for the Dow Jones Industrial Average increased by 114 points, or 0.3%. The S&P 500 futures rose by 0.4%, while Nasdaq Composite futures climbed by 0.7% in premarket trading.
Thursday’s selloff occurred as investors expressed concerns about the Federal Reserve’s future interest rate decisions. Recent positive economic data had bolstered confidence in the U.S. economic outlook but also raised doubts about the urgency of rate cuts if the economy shows signs of strength.
“Markets experienced a notable pullback over the past 24 hours, with the S&P 500 recording its worst daily performance in over two weeks,” Deutsche Bank analyst Henry Allen remarked. “The downturn was driven by growing skepticism about the likelihood of a significant rate cut this year, fueled by stronger data and recent comments from Fed officials.”
Allen emphasized that investors are keenly awaiting Powell’s remarks to gauge the likelihood of a rate cut in September and to understand the potential magnitude of any adjustment.
Futures Prices:
E-Mini Dow: $40,948.00, up $120.00, or 0.29%
E-Mini S&P 500: $5,615.50, up $21.50, or 0.38%
E-Mini Nasdaq 100: $19,697.00, up $118.75, or 0.61%
