Stock futures were little changed ahead of Powell’s Jackson Hole speech

Traders on the floor of the NYSE, August 24, 2022.

Source: NYSE

Stock futures fell slightly Thursday evening as investors eagerly awaited Federal Reserve Chairman Jerome Powell’s speech in Jackson Hole, Wyoming on Friday morning.

Futures contracts linked to the Dow Jones Industrial Average fell 63 points. S&P 500 futures lost 0.2% and Nasdaq 100 futures slipped 0.1%.

The moves followed a bullish day for major averages in which the Dow jumped around 300 points and the S&P 500 gained 1.4%. The Nasdaq Composite was the best performer, rising 1.7% as a decline in yields helped tech stocks.

“The 10-year Treasury yield that topped 3% this week brought volatility back into stocks and with it daily speculation that the Fed isn’t doing enough to fight inflation,” he said. to CNBC Robert Cantwell, portfolio manager at Upholdings. “Overall, it remains a very attractive time to invest in stocks. Underlying company performance is strong for the highest quality companies, and multiples are down due to macro fears. is the setup that all long-term investors are looking for.”

Nonetheless, all major averages are on pace for their second consecutive week of declines. The Dow Jones is on track for a 1.2% decline. The S&P 500 and Nasdaq Composite are heading for slightly smaller declines of 0.7% and 0.5%, respectively.

All eyes are on Powell’s highly anticipated speech at 10 a.m. ET at the central bank’s annual symposium in Wyoming.

Investors are hoping for further guidance on how the Fed will act this fall, but expectations are lower, with many expecting Powell to reiterate the Fed’s promise to curb inflation by raising interest rates. Opinions are divided on whether the Fed will hike rates by half a percentage point or three-quarters of a point at its next policy meeting in September.

“We’ll probably see relief tomorrow unless we get a big shock from what Powell is saying,” Gabriela Santos, global market strategist at JP Morgan Asset Management, told CNBC’s “Closing Bell: Overtime.” “One thing I would keep an eye on as we look to next week and into the fall… implied bond volatility is still very, very high for what it normally is at the end of August, suggesting that in In fact, we will likely continue to see a lot of yield curve action, which could affect equity markets in the fall.”

Comments are closed.