US Stock Futures Rise Ahead of Central Bank Meeting in Jackson Hole and Nvidia Quarterly Report
U.S. stock index futures have increased following a significant selloff last week. Investors are eagerly awaiting additional information on interest rates from an upcoming gathering of central bank policymakers in Jackson Hole, as well as Nvidia’s quarterly report.
The stock market has experienced strong gains this year due to indications of cooling inflation. However, these gains have been put to the test in August, with the S&P 500 losing over 5% from its intra-day high in late July. Last week, evidence of a robust U.S. economy further increased expectations that the Federal Reserve may maintain higher interest rates for a longer period. As a result, the 10-year Treasury yield reached its highest level since October.
Investors are particularly interested in the comments of Fed Chair Jerome Powell at the meeting of central bankers in Jackson Hole, which begins on August 24th. Powell’s remarks will be closely analyzed to determine his stance on the economy and potential credit risks. Any concerns raised by Powell could lead to the market pricing in earlier rate cuts.
Last week, all three of the main U.S. stock indexes experienced declines, with the Nasdaq being the hardest hit. However, growth stocks, including Tesla, have shown improvement in premarket trading. Tesla was up 2.8%, and Nvidia, which significantly outperformed its peers, climbed 2% after HSBC raised its price target on the stock.
The chip designer’s upcoming quarterly report on Wednesday will be pivotal in assessing the stock market rally that has been driven by optimism around artificial intelligence. Additionally, cybersecurity firm Palo Alto Networks saw a 12.5% jump in premarket trading after forecasting annual billings above expectations.
At 5:27 a.m. ET, Dow e-minis were up 131 points, S&P 500 e-minis were up 21.5 points, and Nasdaq 100 e-minis were up 96.25 points.
Sources:
– Reuters: https://www.reuters.com/article/us-usa-stocks/us-stock-futures-rise-ahead-of-central-bank-meeting-in-jackson-hole-and-nvidia-quarterly-report-idUSKCN1L61RH
