(Reuters) – U.S. stock index futures rose slightly on Friday as investors awaited comments from Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Symposium for clues about rate cuts in the world’s largest economy.
While minutes from this week’s July Fed meeting showed some policymakers are prepared to consider rate cuts starting in September, Powell’s speech could provide insight into the pace of easing and how the central bank will respond as the economy develops.
Powell is expected to speak at 10 a.m. ET (2 p.m. GMT) at the annual global meeting of central bank officials in Jackson Hole, Wyoming.
“The question is whether he will go so far as to open the door to a 50 basis point hike – if not in September, then later this year,” said ING strategist Francesco Pesole.
Traders have fully priced in a scenario in which the Fed begins cutting interest rates on September 17 and 18. According to CME Group’s FedWatch tool, there is a 74% chance of a 25 basis point cut.
Recent data, including weekly jobless claims and payroll revisions, showed the U.S. economy was slowing, albeit gradually, easing fears of a sharp downturn.
That has helped Wall Street’s three major indexes recover from a plunge earlier this month caused by a dismal July jobs report and a yen carry trade. The S&P 500 is now about 1.8% away from a record high hit in mid-July, after falling as much as 9.7% from that level.
At 5:07 a.m. ET, the Dow E-minis rose 109 points, or 0.27%, while the S&P 500 E-minis rose 0.4% to 5,616.25. The Nasdaq 100 E-minis rose 126 points, or 0.64%.
Shares of Workday rose 11% in pre-market trading after the HR software provider beat market expectations for second-quarter revenue and announced a $1 billion share buyback plan.
Shares of Ross Stores rose 5.7% after the discounter raised its profit forecast for fiscal 2024.
Later in the day, data from the U.S. Census Bureau is expected to show that new home sales held steady in July after hitting a seven-month low in June.
(Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath)
