Traders watch a television broadcasting Jerome Powell, chairman of the U.S. Federal Reserve, announcing an increase in the Federal Reserve interest rate on the floor of the New York Stock Exchange on Wednesday, Dec. 19, 2018.
Michael Nagle | Bloomberg | Getty Images
U.S. stock futures rose Friday as Wall Street looked toward Federal Reserve Chairman Jerome Powell’s Jackson Hole speech.
Futures tied to the Dow Jones Industrial Average ticked up 115 points, or 0.3%. S&P 500 futures advanced 0.2%, while Nasdaq-100 futures were slightly above flat.
The Jackson Hole Economic Symposium in Wyoming brings together central bankers and key financial officials from across the world. During last year’s gathering, stocks fell following Powell’s hawkish speech. The chair used the forum to warn of “some pain” ahead in the battle against inflation.
This year, the event’s stated topic is a focus on “structural shifts in the global economy.”
“As always, investors will be parsing comments from Powell and others about the likely road ahead — mainly whether interest rates may remain at relatively high levels for an extended period of time, even if inflation continues to decline from current levels,” said Zachary Hill, head of portfolio strategy at Horizon Investments.
The strategist believes any market volatility resulting from Powell’s comments, which begin Friday at 10:05 am ET, will be short-lived.
“We expect volatility and position adjustments around events like Jackson Hole, but we broadly view the recent action across equities and fixed income as more of a healthy correction than a new trend,” Hill said.
Wall Street is coming off a downbeat session, with the S&P 500 and Nasdaq failing to hold an early rally sparked by strong Nvidia earnings. Both benchmarks had their biggest one-day losses since Aug. 2, while the Dow suffered its biggest pullback since March.
Despite Thursday’s declines, both the S&P 500 and Nasdaq are holding on to weekly gains of 0.2% and 1.3%, respectively. If the two averages manage end the week in the green, they would break a 3-week losing streak.