U.S. stock index futures rose on Friday, recovering from the previous session’s losses, as attention shifted to Federal Reserve Chair Jerome Powell’s upcoming speech for further insights into the central bank’s interest rate policy.
As of 06:15 ET (10:15 GMT), Dow Jones Futures climbed by 145 points, or 0.4%, S&P 500 Futures increased by 30 points, or 0.5%, and Nasdaq 100 Futures gained 155 points, or 0.8%.
Wall Street experienced significant declines on Thursday, driven primarily by losses in technology stocks as investors moved towards sectors more sensitive to interest rate changes. The S&P 500 dropped by 0.9%, the NASDAQ Composite fell by 1.6%, and the Dow Jones Industrial Average decreased by 0.4%.
Powell’s Upcoming Speech at Jackson Hole
Fed Chair Jerome Powell is set to address the Jackson Hole Symposium on Friday, where he is expected to provide additional guidance on the central bank’s strategy for cutting interest rates. Although Powell is unlikely to directly indicate a rate cut in September, markets have already priced in a high probability of such a move next month. Traders remain divided on whether the cut will be 25 or 50 basis points, according to CME Fedwatch.
Recent indications of a cooling U.S. economy, particularly in the labor market, have strengthened expectations for lower interest rates. Data released earlier this week revealed a substantial downward revision in payroll figures for the year leading up to March 2024, suggesting that recent declines in payrolls originated from a lower base than initially thought. This has heightened concerns that a rapidly weakening labor market could lead to a hard landing and potentially trigger a recession.
In terms of U.S. economic data, the session will later include the latest figures on building permits and new home sales for July.
Corporate Developments: Uber and Ross Stores
In corporate news, Uber Technologies (NYSE
) announced a multiyear partnership with Cruise, a subsidiary of General Motors (NYSE
), to integrate Cruise’s self-driving vehicles into Uber’s ride-hailing platform.
Ross Stores (NASDAQ
) saw its stock surge in premarket trading after the retailer raised its profit forecast for fiscal 2024 and reported better-than-expected second-quarter results, driven by strong demand for discounted apparel and lower freight costs.
Workday (NASDAQ
) shares also rose in premarket trading after the human resource software company exceeded market expectations for second-quarter revenue and announced a $1 billion stock buyback plan.
Crude Oil on Track for Weekly Losses
Crude oil prices edged higher on Friday but remained on course for significant weekly losses due to ongoing concerns about slowing demand. As of 06:15 ET, U.S. crude futures (WTI) were up 0.9% to $73.66 a barrel, while Brent crude rose 0.9% to $77.81 a barrel.
Both benchmarks reached their lowest levels since early January this week, with Brent down about 3% and WTI nearly 5% lower for the week.
Recent data from China, the world’s largest oil importer, indicated a struggling economy and declining demand from refiners, while the sharp revision to U.S. employment data earlier in the week increased the likelihood of a hard landing for the U.S. economy, the largest energy consumer.
Additionally, efforts to negotiate a ceasefire between Israel and Hamas, with U.S. and Israeli officials meeting in Cairo to discuss a truce proposal, have helped alleviate supply concerns, further weighing on oil prices.
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