- US stock futures showed mixed trends ahead of Fed Chair Warsh's Jackson Hole speech
- Nasdaq slipped 0.07%, Dow rose 0.24%, and S&P 500 gained 0.11% in early trading
- Investors await Warsh's inflation and interest rate comments to gauge Fed policy
US stock futures were mixed ahead of Tuesday's trading session as investors turned their attention to Federal Reserve Chair Kevin Warsh's address at Jackson Hole, with markets looking for clues on the central bank's economic outlook and the future path of interest rates.
The Nasdaq 100 was down 0.07% at 26,523.99, while the Dow Jones Industrial Average gained 0.24% to 53,682.48. The S&P 500 was up 0.11% at 7,739.43. Salesdorce Inc. was up 2.33% , while McDonald's Corp shares rose 1.11%. Nike and Amazon were also up nearly 1%. On the other hand, Johnson & Johnson, Boeing Co. and Visa Inc. were trading lower.
Investors are closely watching Warsh's speech, scheduled for 10 am New York time, as his comments on inflation and interest rates could influence expectations for the Federal Reserve's policy path. Market participants are assessing whether Warsh will take a sufficiently hawkish stance on inflation. Concerns that the Fed may not be tough enough on price pressures have contributed to higher long-term bond yields.
Disagreements among Federal Reserve officials and recent Treasury actions in the bond market are also adding to uncertainty, according to reports.
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The latest cautious trading follows signs of fatigue in US equities after a strong tech-led rally. Stocks advanced sharply on Thursday, led by Nvidia's nearly 9% post-earnings surge. The technology sector, S&P 500 and Nasdaq Composite all recorded their strongest gains since August 4.
However, investors turned more cautious as they booked profits following the recent gains and waited for fresh signals on the Federal Reserve's interest-rate outlook. The three major US indices were on track to end the week higher following Thursday's rally. A positive close for the Dow would mark its first winning week in three.
The bond market is also reflecting the uncertainty around the Fed's policy outlook. The yield on the 10-year US Treasury rose one basis point to 4.69%, while Germany's 10-year yield advanced two basis points to 3.28%. Britain's 10-year yield also climbed two basis points to 5.05%.
The Bloomberg Dollar Spot Index was little changed. In commodities, West Texas Intermediate crude fell 0.9% to $82.81 a barrel, while spot gold was little changed.
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