US stock futures wavered just above the flatline as Wall Street readied for the main event of the week: Federal Reserve Chair Jerome Powell's speech at the Jackson Hole symposium in Wyoming.
Futures attached to the Dow Jones Industrial Average (YM=F), the benchmark S&P 500 (ES=F), and the tech-heavy Nasdaq 100 (NQ=F) ticked up 0.1%.
Stocks swung last week as Fed policy predictions shifted. After July's Consumer Price Index (CPI) report showed inflation had increased at a pace that was in-line with analysts' expectations, rate-cut bets surged, sparking a two-day stock rally. However, a second check on inflation that week, July's Producer Price Index report, came in hotter-than-expected and abruptly threw cold water on rate-cut hopes and stocks' march higher.
This week, more signs that a rate cut may not be imminent piled up. Minutes from the Federal Reserve's last meeting showed that the two officials who dissented from the decision to hold rates steady in July were largely alone in their opinion. The minutes also indicated inflation was more of a concern for officials than labor market weakness. Finally, two policymakers, Jeffrey Schmid and Beth Hammack, expressed wariness over a September rate cut on Thursday.
Meanwhile, President Trump has continued a pressure campaign on the Federal Reserve, publicly bashing Powell and, more recently, calling for the resignation of Fed governor Lisa Cook for alleged mortgage fraud. His tariff policy also continues to evolve with its ultimate impact on inflation difficult to predict.
Against this backdrop, Powell's speech has investors on edge. His remarks are set to not only shake up rate-cut bets but also shape monetary policy for years to come.
Amid the countdown to his Jackson Hole remarks, stocks slipped on Thursday. Disappointing Walmart (WMT) earnings and hotter-than-expected jobless claims data contributed to a dip in sentiment.
In after-hours trading, corporate earnings led to some companies seeing swings in their stock prices. Zoom (ZM) popped on an AI boost, and Ross Stores (ROST) jumped as shoppers seek discounts amid tariffs. Intuit (INTU) and Workday (WDAY), meanwhile, tumbled.
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Stock market coverage for Friday, August 22, 2025.
