Investors Await Powell's Speech Amid Mixed Market Signals

U.S. stock index futures dipped after Wall Street's best week of the year, with eyes on Federal Reserve Chair Jerome Powell's speech in Jackson Hole. Economic data hinted at a soft landing, leading Goldman Sachs to lower recession odds. Fed's next rate decision remains uncertain, affecting traders' outlook.

U.S. stock index futures took a slight dip on Monday, following Wall Street's strongest week this year, as investors focused on this week's key event - Federal Reserve Chair Jerome Powell's speech at Jackson Hole.

Last week, all three major indexes surged, bolstered by economic data suggesting a soft landing for the economy. This prompted Goldman Sachs to reduce the likelihood of a U.S. recession in the next 12 months to 20% from 25%, following the latest jobless claims and retail sales figures.

Over the weekend, Chicago Fed chief Austan Goolsbee cautioned against cutting rates next month, warning it could damage the job market. Meanwhile, San Francisco Fed President Mary Daly suggested it's time to consider adjusting borrowing costs. Investors hope Powell will provide clues about a possible rate cut in September. Traders currently estimate a 72% chance of a 25-basis-point rate cut, as per the CME FedWatch Tool.

(With inputs from agencies.)