US stocks were set to rise again on Thursday as investors wondered how far the Federal Reserve would cut interest rates in September, ahead of a key speech by Chairman Jerome Powell.
Futures on the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) rose about 0.2%. Dow Jones Industrial Average futures (YM=F) rose 0.1% after all three indexes closed in the green on Wednesday.
Stocks turned positive after minutes from the Fed’s latest meeting showed several officials open to a rate cut in July, signaling a likely reversal in next month’s policy decision. Growing hopes for lower interest rates have already helped markets pare losses from an early August rout.
Investors now await new labor market data and the kickoff of the Fed’s Jackson Hole symposium later on Thursday. The highlight of the week is Powell’s speech at the event on Friday, with the market on edge for any change in tone from the Fed chair.
Thursday’s reading on jobless claims is taking center stage as an official payrolls review showed the labor market — a key input for policymakers — may have cooled much earlier than previously thought. Signs of stress could play a role in how far the Fed cuts rates, with hopes for a 0.5% cut in play.
On the corporate front, shares of Paramount (PARA) rose in premarket trading after media executive Edgar Bronfman Jr. raised his takeover bid to $6 billion. Meanwhile, shares of Snowflake (SNOW) fell as its sales outlook disappointed investor hopes for an AI boost.
