Investors Await Fed Signals: Futures Climb Ahead of Powell’s Key Address

U.S. stock index futures were on the rise Friday morning, bouncing back from the previous session's declines. Investors are now eagerly awaiting a crucial address by Federal Reserve Chair Jerome Powell for more insights into the central bank's future plans regarding interest rates.

Morning Futures Up: A Rebound After Losses

As of 06:35 AM EDT, Dow Jones Futures were up by 118 points, or 0.29%, S&P 500 Futures gained 24.50 points, or 0.44%, and Nasdaq 100 Futures climbed 140.75 points, or 0.72%.

The gains come after a rough day on Wall Street Thursday, where major indexes experienced significant losses. Technology stocks, in particular, were hit hard as traders shifted their investments to more rate-sensitive sectors. The S&P 500 fell by 0.9%, the NASDAQ Composite dropped 1.6%, and the Dow Jones Industrial Average decreased by 0.4%.

Powell’s Jackson Hole Speech: What to Expect

Federal Reserve Chair Jerome Powell is scheduled to speak at the Jackson Hole Symposium later today. Market participants are closely watching for any hints regarding the Fed’s plans to cut interest rates. While Powell is not expected to announce a rate cut for September directly, the market is almost certain that a reduction is on the horizon. Current speculation suggests a potential cut of either 25 or 50 basis points, according to CME Fedwatch.

Recent data indicating a cooling U.S. economy, particularly within the labor market, has heightened expectations for lower interest rates. A significant downward revision in payrolls data earlier this week has raised concerns about a potential hard landing for the economy, which could spur a recession.

Investors will also be looking at upcoming U.S. economic data, including new building permits and home sales figures for July, which are scheduled to be released later today.

Corporate Highlights: Uber and Ross Stores in Focus

In corporate news, Uber Technologies (UBER) announced a new multiyear partnership with Cruise, a subsidiary of General Motors (GM). This collaboration will see Cruise’s self-driving vehicles integrated into Uber's ride-hailing platform.

Ross Stores (ROST) saw a sharp rise in its stock price during premarket trading after the retailer upgraded its fiscal 2024 profit forecast and reported second-quarter results that exceeded expectations. The boost was driven by strong demand for discounted apparel and lower freight costs.

Workday (WDAY) also experienced a premarket surge following its second-quarter revenue report, which topped market expectations, and the announcement of a $1 billion stock buyback plan.

Crude Oil Prices: Weekly Losses Persist

Crude oil prices edged up slightly on Friday but were still on track for substantial weekly losses due to ongoing concerns about weakening demand. As of 06:35 AM EDT, U.S. crude futures (WTI) were up by 0.93% at $73.69 a barrel, while Brent crude rose 0.9% to $77.81 a barrel.

Both crude benchmarks have reached their lowest levels since early January this week. The Brent contract has fallen by around 3% and WTI by nearly 5% so far this week. Concerns over slowing economic activity in China, the world’s largest oil importer, and revised U.S. employment data have contributed to these declines. Additionally, a renewed diplomatic push for a ceasefire in Gaza, involving U.S. and Israeli delegations, has eased supply concerns and exerted downward pressure on oil prices.