U.S. stocks were poised to resume gains on Thursday as investors assessed how far the Federal Reserve might cut interest rates in September, ahead of a key speech by Chairman Jerome Powell.
Futures for the S&P 500 (ES=F) and the tech-heavy Nasdaq 100 (NQ=F) rose about 0.2%. Futures for the Dow Jones Industrial Average (YM=F) added 0.1% after all three indexes closed in the green on Wednesday.
Stock markets took a positive tone after minutes from the Fed’s latest meeting showed several officials were open to a rate cut in July, indicating a change of course is likely in next month’s policy decision. Rising expectations of a rate cut have already helped markets recoup losses from the early August rout.
Investors now await the latest labor market data and the start of the Fed’s Jackson Hole symposium next Thursday. The highlight of the week will be Powell’s speech on Friday, with the market on high alert for any change in tone from the Fed chairman.
Thursday’s jobless claims numbers are all the more important because an official revision to employment figures showed that the labor market — a key driver for policymakers — may have started to slow well before initially thought. The signs of stress could influence the size of the Fed’s rate cut, with hopes of a 0.5% reduction.
In corporate news, shares of Paramount (PARA) rose premarket after media executive Edgar Bronfman Jr. boosted his buyout offer to $6 billion. Meanwhile, Snowflake (SNOW) fell as its sales outlook dashed investors’ hopes for improved artificial intelligence.
Discover more from The Times Of Update
Subscribe to get the latest posts sent to your email.
