Stock Futures Rise Ahead of Powell Comments
Stock futures rose Friday as investors awaited Federal Reserve Chairman Jerome Powell’s speech at Jackson Hole, seeking clues about when the central bank might start to scale back its easy-money policies.
Futures for the S&P 500 edged up 0.3%. The benchmark index retreated 0.6% on Thursday, erasing some of the gains made this week. Contracts for the Dow Jones Industrial Average ticked up 0.2% Friday, and futures for the technology-heavy Nasdaq-100 added 0.3%.
In the bond market, the yield on 10-year Treasury notes ticked down to 1.336% from 1.342% Thursday. Yields move in the opposition direction to bond prices and slipped after data showed consumer spending grew 0.3% in July, suggesting the recovery has lost momentum amid uncertainty caused by the Delta variant.
Major stock indexes are close to all-time highs, powered by expectations that strong economic growth will extend a surge in corporate profits. A key question for investors is when the Fed will scale back its $120 billion in monthly asset purchases and consider raising interest rates. Minutes from the Fed’s late July policy gathering showed that many of the officials thought asset buying could start to slow down by the end of this year.
Mr. Powell is due to address the central-bank symposium in Wyoming at 10 a.m. ET and his remarks will be streamed online. Investors are looking to gauge whether the Delta variant, which threatens to delay a rebound in travel and leisure spending, will alter the Fed’s plans.
