(Reuters) – U.S. stock index futures were slightly higher on Friday as investors awaited comments from Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Symposium for clues on interest rate cuts in the world’s largest economy.
While minutes from the Fed’s July meeting this week showed that a number of policymakers were willing to consider cutting interest rates in September, Powell’s speech could offer insights into the pace of easing and how the central bank will respond as the economy evolves.
Powell is scheduled to speak at 10 a.m. ET (1400 GMT) at the annual global gathering of central bankers in Jackson Hole, Wyoming.
“The question is whether it will go as far as opening the door to a 50 basis point move – if not in September, then later this year,” said Francesco Bisol, ING strategist.
Traders have priced in a full scenario in which the Federal Reserve begins easing interest rates at its Sept. 17-18 meeting, with a 74% chance of a 25 basis point rate cut, according to CME Group’s FedWatch tool.
Recent data, including weekly jobless claims and payrolls, have suggested that the U.S. economy is slowing, albeit gradually, easing concerns about a sharp slowdown.
That helped Wall Street’s three main indexes recover from a slide earlier this month on dismal July employment data and the yen’s carry trade. The S&P 500 is now about 1.8% away from its record high in mid-July, having fallen about 9.7% from there.
At 5:07 a.m. ET, the Dow Jones Industrial Average was up 109 points, or 0.27%, while the S&P 500 was up 0.4%, at 5,616.25. The Nasdaq 100 was up 126 points, or 0.64%.
Shares of Workday jumped 11% in premarket trading after the human resources software company beat market expectations on second-quarter revenue and announced a $1 billion share buyback plan.
Shares of Ross Stores rose 5.7% after the discount retailer raised its earnings forecast for fiscal 2024.
Later in the day, data from the U.S. Commerce Department’s Census Bureau is expected to show new home sales held steady in July after hitting a seven-month low in June.
(Reporting by Medha Singh in Bengaluru; Editing by Devika Syamnath)
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