S&P 500 futures were trading just below the flatline, while Dow Jones Industrial Average futures edged higher. Nasdaq 100 futures slipped around 0.3%, following a strong technology-led rally in the previous session that was fuelled by upbeat earnings and renewed optimism around artificial intelligence.
Among individual stocks, Gap shares jumped about 14% in premarket trading after the retailer reported mixed quarterly results and announced a new chief executive for its struggling Old Navy brand. Marvell Technology shares fell roughly 8% after its current-quarter outlook for non-GAAP gross margin disappointed investors.
Fed rate outlook in focus
Investors are looking to Warsh’s address for greater clarity on the Federal Reserve’s interest-rate path after his comments at the previous policy meeting left markets seeking more direction. The speech, scheduled for 10 a.m. ET, comes as Fed officials remain divided over the timing of future rate moves, while inflation continues to run above the central bank’s 2% target.
Fed funds futures are currently pricing in about a 64% probability that the central bank will keep interest rates unchanged at its next meeting, according to CME Group’s FedWatch tool.
Wall Street is also digesting the impact of a strong earnings season.
Nvidia’s upbeat long-term outlook has helped revive confidence in the artificial intelligence trade, lifting technology stocks in Thursday’s session. Salesforce also rallied sharply after its latest results eased concerns around a potential slowdown in software spending.Following Thursday’s gains, the three major US indexes are on track to finish the week higher. A weekly gain for the Dow would mark its first positive week in three.
Also Read: Jackson Hole: Fed speeches that moved markets, and what Kevin Warsh may signal this year
