Investing.com — Wall Street Trading Updates

Wall Street is seen trading in tight ranges Thursday as it anticipates more labor macro data, a speech by Vice President Kamala Harris, and the start of the Jackson Hole symposium on Friday.

1. Powell Speech to Shape Market’s Stance

All eyes are focused on Wyoming’s Grand Teton National Park on Friday, where Fed Chair Jerome Powell will deliver a speech at the Jackson Hole symposium. This speech is expected to shape the market’s view on upcoming monetary policy and the economy.

Weakening U.S. economic data gives the Federal Reserve the go-ahead to cut interest rates, increasing expectations that the Fed will act at its next meeting in September. The minutes from the Fed’s July meeting indicated a strong consensus among policymakers that easing may begin soon. Consequently, Powell’s address may be more about assessing current economic conditions than further shaping rate cut expectations.

Signs of a cooling labor market have raised concerns over a potential slowdown in the U.S. economy, impacting risk appetite this week. Goldman Sachs anticipates Powell’s speech will emphasize caution and data dependency regarding rate cuts.

2. Futures Edge Higher Ahead of Jackson Hole

U.S. stock futures showed modest gains Friday, ahead of Powell’s key speech, which might signal the start of the central bank’s rate-cutting cycle.

As of 04:05 ET (08:05 GMT), the Dow futures contract rose by 0.3%, the S&P 500 futures increased by 0.4%, and Nasdaq 100 futures climbed by 0.6%. The benchmarks closed sharply lower Thursday, dragged down by rising Treasury yields.

Despite recent losses, indices like the DJIA and S&P 500 remain slightly up for the week. Market attention will be on Powell’s insights about future interest rates alongside the release of new economic data.

In corporate news, Uber announced a partnership with Cruise for its self-driving vehicles, while Ross Stores’ stock surged after the company raised its profit forecast.

3. BOJ’s Ueda Confirms Desire to Lift Rates

Amid the focus on Fed Chair Powell, other central bankers are also making key policy decisions. Bank of Japan Governor Kazuo Ueda expressed his intention to raise interest rates but acknowledged the ongoing instability in financial markets.

Ueda emphasized that Japan’s short-term rates remain very low and could adjust upward if the economy remains strong. The BOJ recently ceased negative interest rates and raised its policy rate amid ongoing changes in monetary strategy.

In Europe, ECB policymakers are also expected to cut rates further if inflation remains in decline after their initial cuts earlier this year.

4. Harris Formally Accepts Democratic Nomination

Kamala Harris accepted her nomination as the Democratic candidate for the 2024 presidential race, identifying tax cuts for the middle class, housing reform, and social care as key priorities. The vice-presidential debate is scheduled for October 1, and she is gaining ground in polls against Trump.

5. Crude on Course for Hefty Weekly Losses

Crude prices rose slightly Friday but were on track for significant weekly declines amid worries over weakening demand. U.S. crude futures rose to $73.39, while Brent climbed to $77.62 per barrel.

Both benchmarks experienced their lowest levels since early January this week, driven by declining demand from China and rising U.S. oil production. Additionally, talks for a ceasefire between Israel and Hamas have contributed to easing supply concerns.