Stock futures are little changed after release of new U.S. inflation data, Powell speech ahead

Stock futures were little changed Friday absorbed new inflation data ahead of Federal Reserve Chair Jerome Powell’s speech in Jackson Hole, Wyoming.

Futures tied to the Dow Jones Industrial Average lost 11 points, or 0.03%. S&P 500 futures traded 0.17% lower, and Nasdaq 100 futures slipped by 0.19%.

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

All eyes are on Powell’s widely anticipated 10 a.m. ET speech at the central bank’s annual symposium in Wyoming. Traders digested one of the Fed’s favorite inflation measures, the personal consumption expenditures data, which on Friday showed price increases eased in July.

Related:  Stock futures tick higher a day after market sell-off from Fed rate hike

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

“Recent US economic data has been encouraging, improving the likelihood of the Fed achieving a soft landing. But we think markets may have gotten ahead of themselves in pricing in this scenario,” UBS’ Global Wealth Management Chief Investment Officer Mark Haefele wrote in a Friday note.

Related:  Deflation to Trigger Fed’s 180

The moves followed an up day for the major averages in which the Dow jumped about 300 points, and the S&P 500 gained 1.4%. The Nasdaq Composite was the outperformer, advancing 1.7% as a pullback in yields helped tech shares.

Leave a Comment