(Reuters) – U.S. stock futures fell on Friday as investors worried about slowing economic growth from Federal Reserve Chairman Jerome Powell’s hawkish signal at the annual Jackson Hole symposium.
Powell’s morning ET 1000 speech will be reviewed for any signs that an economic slowdown could change the Fed’s monetary policy tightening path , and whether the central bank can achieve a “soft landing”.
Since the start of the year, Wall Street has tumbled as investors price in sharp rate hikes and an economic slowdown.
However, it has rebounded strongly since June, S&P 500 regained half of its The drop came on the back of stronger-than-expected quarterly earnings and hopes that inflation had peaked for the year.
Markets are now watching for any clues about the Fed’s upcoming meeting in September. Fed officials on Thursday were noncommittal about how much they would raise interest rates, but reiterated they would push them higher and keep them there until inflation is squeezed out of the economy.
Traders expect a slightly higher rate hike by the Fed on a small 39 basis point basis for a third rate hike 39 basis points, while economists expect the central bank to raise rates at its meeting next month 50 basis points.
The PCE price index, the Fed’s preferred inflation gauge, will also be released later in the day. The core personal consumption expenditures (PCE) price index likely rose 0.3% in July after rising 0.6% the previous month.
Investors will also focus on a series of other economic data ahead of the Federal Reserve Chairman’s speech for clues on the economy’s strength including consumer spending, personal income and consumer sentiment.
exist: 50 am ET, Dow e-minis Down 89 points, or 0.%, S&P 500 e-mini drop.5 points, or 0.16%, and NASDAQ100 e-mini down39 points, or 0.50%.
High growth like Nvidia (NASDAQ:NVDA) and Apple (NASDAQ:AAPL) And technology stocks edged lower in premarket trading after sharp gains in the previous session.
Dell Technologies (NYSE: DELL) Inc fell 4.9% as it forecasts alongside rivals The economic slowdown has prompted consumers and businesses to tighten their wallets as runaway inflation and a bleak economic outlook.
Gap Inc (NYSE: GPS) rose 6.5% The apparel retailer reported a surprise quarterly profit that beat revenue estimates , and said sales improved in July and August, with lower fuel prices helping boost discretionary spending.