Stock futures tilt up ahead of Fed chief Jerome Powell’s Jackson Hole speech
U.S. stock futures are showing a slight upward trend on Friday, with investors eagerly awaiting Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole economic forum. As of 8:55 a.m. EST, S&P 500 futures were up 0.2%, Dow Jones Industrial Average futures added 0.3%, and Nasdaq Composite futures were up 0.2%.
The global market reaction has been mixed, partly influenced by a drop in Walmart stock on Thursday. Investors are hoping for signals of a potential rate cut by the Fed. Powell is expected to address economic trends at the event hosted by the Federal Reserve Bank of Kansas City at 10 a.m. Traders will be closely watching for any hints about a rate cut at the upcoming Fed meeting on Sept. 17.
Throughout this year, the Federal Open Market Committee (FOMC) has refrained from a rate cut, opting for a cautious approach to assess the impact of tariffs imposed by the Trump administration. President Trump has been vocal in urging the central bank to lower rates. The Fed’s dual mandate of controlling inflation and promoting maximum employment has become more challenging due to a slowdown in job growth and signs that tariffs are causing price increases.
Economists are particularly interested in Powell’s stance on inflation, especially in light of the Consumer Price Index rising 2.7% annually in July, slightly above the Fed’s 2% target. Torsten Slok, Apollo Chief Economist, emphasized the importance of Powell’s confidence in inflation moving towards the target.
The Federal Reserve’s decisions have far-reaching implications for the economy and financial markets. Powell’s speech at Jackson Hole could provide valuable insights into the central bank’s future actions. Stay tuned for updates on how his remarks may impact the market.
This article was contributed by The Associated Press, with additional reporting by Mary Cunningham, a reporter for CBS MoneyWatch. Before her current role, she gained experience at “60 Minutes,” CBSNews.com, and CBS News 24/7 through the CBS News Associate Program.
