Investors Eye Powell’s Jackson Hole Speech for Rate Cut Clues

U.S. stock futures are up as investors await Federal Reserve Chair Jerome Powell's comments at the Jackson Hole Economic Symposium. Powell's speech could offer insights on future interest-rate cuts. The market is already pricing in a 74% chance of a rate cut in September.

Investors eagerly awaited comments from Federal Reserve Chair Jerome Powell on Friday at the Jackson Hole Economic Symposium, anticipating insights into potential interest-rate cuts in the U.S. economy.

The Federal Reserve's recent July meeting minutes indicated that some policymakers are open to rate cuts as soon as September. Powell's scheduled speech at 10 a.m. ET (1400 GMT) is expected to provide further clarity on the central bank's plans. Traders are betting on a 74% probability of a 25-basis-point rate cut in the Fed's September meeting using CME Group's FedWatch tool.

Recent U.S. economic data, including jobless claims and payroll revisions, suggest a gradual slowdown, which has helped major stock indexes recover from recent dips. In premarket trading, the Dow E-minis gained 109 points, or 0.27%, the S&P 500 E-minis added 0.4%, and the Nasdaq 100 E-minis rose 126 points, or 0.64%. Standout movers included Workday and Ross Stores, which saw significant share price increases due to strong earnings reports and revised profit forecasts.

(With inputs from agencies.)