S&P 500 and Nasdaq futures slip ahead of Warsh Jackson Hole speech

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U.S. Stock Futures Mixed

Highlights

S&P 500 and Nasdaq 100 futures rise, while the Dow falls.
Investors await fresh rate signals from Warsh.
Jackson Hole puts Fed policy back in focus.

S&P 500 futures slipped 0.05%, to 7,738.25, while Nasdaq 100 futures fell 0.29%, to 29,608.75. Dow Jones futures moved against the trend, rising 0.04%, to 53,642. The mixed performance reflected caution ahead of Fed Chair Kevin Warsh’s Jackson Hole address, with investors looking for fresh signals on inflation and the path of interest rates, while earnings-driven moves in individual stocks also shaped sentiment, CNBC reported.

Futures pause after Nvidia-led rally

Friday's restrained moves follow a broad advance on Thursday. Nvidia surged nearly 9% after reporting earnings, helping lift technology shares and pushing both the S&P 500 and Nasdaq Composite to their strongest sessions since Aug. 4.

Individual stocks were moving sharply in premarket trading. Gap gained about 15% despite mixed quarterly results after the retailer named a new chief executive for Old Navy. Marvell Technology dropped roughly 6% after its guidance for the current-quarter adjusted gross margin disappointed investors.

Asian markets provided no clear direction overnight. Japan's Nikkei 225 rose 0.41%, while South Korea's Kospi lost 1.79%. China's CSI 300 declined 0.46%, and Australia's S&P/ASX 200 advanced 0.6%.

Warsh takes center stage at Jackson Hole

The main event for markets is Warsh's speech at the Federal Reserve's annual gathering in Wyoming. Although the address is not connected to a formal policy decision, investors will scrutinize his language for indications of how he views inflation, economic growth, and the path for interest rates.

Fed funds futures currently imply roughly a 64% probability that policymakers will leave rates unchanged at next month's meeting. That makes any shift in Warsh's tone potentially important for Treasury yields, equities, and expectations for subsequent Fed meetings.

The backdrop is complicated by recent moves in government debt markets. The Treasury has announced plans to at least double the size of its regular buybacks of previously issued securities when the next round begins Sept. 9.

Rate outlook could set the next market direction

Warsh's address arrives after Thursday's equity rally put all three major U.S. indexes on course for weekly gains. A positive finish for the Dow would give the blue-chip index its first winning week in three.

The immediate futures moves remain small, but the policy stakes are larger. With the S&P 500 contract near 7,738 and the Nasdaq 100 contract above 29,600, investors enter Friday after a strong technology-led advance. Warsh's guidance on inflation and rates could determine whether that momentum continues or gives way to renewed pressure from bond yields.

Earlier, we reported that Iran sets new conditions for full Hormuz reopening.

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