S&P 500 futures were little changed early Friday as investors turned their attention to Federal Reserve Chairman Kevin Warsh’s highly anticipated speech at the central bank’s annual Jackson Hole symposium. Nasdaq 100 futures slipped 0.08%, while Dow Jones Industrial Average futures gained 71 points, or 0.13%, as traders looked for clues about the direction of U.S. interest rates.
Market sentiment was also influenced by corporate earnings. Gap shares jumped about 15% despite a mixed quarterly report after the retailer announced a new chief executive for its struggling Old Navy brand. Meanwhile, Marvell Technology shares fell roughly 6% after its latest guidance on non-GAAP gross margin disappointed investors.
The cautious mood followed a strong session on Wall Street on Thursday, when Nvidia shares surged nearly 9% following its latest earnings report. The rally helped lift the technology sector, the S&P 500 and the Nasdaq Composite to their best daily performances since August 4. In Asia, markets ended mixed, with Japan’s Nikkei 225 rising 0.41% while South Korea’s Kospi dropped 1.79%.
Investors are now closely watching Warsh’s Jackson Hole address for any indication of how the Federal Reserve may approach interest rates in the months ahead. Although the speech is not part of a formal policy meeting, traders are expected to scrutinize his comments for signals on future monetary policy. Fed funds futures currently indicate about a 64% probability that the central bank will leave rates unchanged at its next meeting, according to the CME FedWatch Tool.
The speech could therefore become a key market event as investors try to understand the new Fed chair’s approach to monetary policy. Analysts say Warsh’s language could shape how markets interpret upcoming economic data, potentially influencing stocks, bonds and interest-rate expectations. Following Thursday’s gains, all three major U.S. indexes are positioned to finish the week higher, with the Dow Jones potentially recording its first positive week in three.
source: cnbc
