Tonight’s Highlights | Global Financial Markets Focus on Jackson Hole, Major Futures See Slight Gains
In pre-market trading on Friday, ahead of a critical speech by Federal Reserve Chair Jerome Powell, U.S. stock futures edged higher.
As of this writing, Nasdaq 100 futures rose 0.14%, S&P 500 futures gained 0.22%, and Dow futures climbed 0.34%. The S&P 500 has experienced five consecutive days of slight declines, reflecting the market’s cautious stance toward this key event.
Powell is scheduled to speak at 10:00 AM Eastern Time. Beyond potential comments on the current rate-cut path, he is expected to unveil a new Federal Reserve policy framework, replacing the rules adjusted five years ago to boost inflation.
Looking back at the past five years of Jackson Hole speeches, Powell only decisively triggered a major U.S. stock market sell-off in 2022. Most of the time, he prefers to reiterate phrases like “data-dependent” and “committed to the dual mandate.”
From analysts’ perspectives, Powell’s “middle-of-the-road” approach tonight is likely designed to leave the door slightly ajar for a minimum rate cut.
Sonja Marten, head of foreign exchange and monetary policy research at Germany’s DZ Bank, interpreted: “The door for a 25-basis-point rate cut in September remains open, but I don’t think he will take more aggressive steps.”
Marten also believes that, using his final Jackson Hole appearance during his term, Powell is likely to “firmly state he will not bow to White House pressure to pursue a policy path lacking fundamental justification.
Another event tonight with less market attention is scheduled: According to the official agenda, U.S. President Trump will deliver a statement from the Oval Office at 12:00 PM Eastern Time (midnight HKT on Saturday).
The White House has not previewed the content. Speculation suggests the U.S. President may address his recent mediation efforts in the Russia-Ukraine conflict, and he has previously hinted at introducing a new wave of industry tariffs.
If there’s a Q&A session, Trump is likely to face questions from reporters commenting on Powell’s latest remarks.
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