Futures Pointing To Roughly Flat Open Ahead Of Warsh Speech

The major U.S. index futures are currently pointing to a roughly flat open on Friday, with stocks likely to show a lack of direction after ending the previous session mostly higher.

Traders may be reluctant to make significant moves ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole economic symposium later this morning.

While Warsh has refrained from providing forward guidance for monetary policy, traders are still likely to pay close attention to his remarks for clues about the outlook for interest rates.

“I do not expect Chair Warsh to provide a roadmap for upcoming policy meetings,” said Jeffrey Roach, Chief Economist for LPL Financial. “Investors should focus on how he connects inflation, productivity, and the bond market.”

He added, “If the speech itself is short on specifics, the references and citations may offer the clearest clues about where the new Fed chair intends to take the institution.”

Ahead of Warsh’s remarks, CME Group’s FedWatch Tool currently indicates a 64.3 percent chance the Fed will leave interest rates unchanged next month and a 35.7 percent chance of a quarter point rate hike.

Nonetheless, the central bank is still widely expected to raise interest rates by at least one quarter point before the end of the year.

After showing a notable upward move in morning trading on Thursday, stocks fluctuated in the afternoon but managed to end the day firmly positive. The tech-heavy Nasdaq showed a particularly strong move to the upside.

The Nasdaq jumped 411.16 points or 1.6 percent to 26,541.35 and the S&P 500 advanced 55.29 points or 0.7 percent to 7,730.99. The narrower Dow posted a more modest gain, rising 105.56 points or 0.2 percent to 53,569.44.

The surge by the Nasdaq reflected strength among technology stocks amid a positive reaction to earnings news from AI giant Nvidia (NVDA).

Shares of Nvidia shot up by 8.7 percent after the chipmaker reported better than expected second quarter results and provided upbeat revenue guidance for the current quarter.

“Nvidia once again delivered stronger-than-expected results, providing some reassurance that the AI investment cycle remains intact,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

Dow component Salesforce (CRM) also skyrocketed on the day, with the cloud-based software company soaring by 22.6 percent.

The spike by Salesforce came after the company reported second quarter results that exceeded analyst estimates and forecast better than expected third quarter earnings.

Salesforce helped lead a rally by software stocks, driving the Dow Jones U.S. Software Index up by 4.5 percent to a nine-month closing high.

Semiconductor stocks also saw significant strength following Nvidia’s results, as reflected by the 2.3 jump by the Philadelphia Semiconductor Index.

Overall buying interest waned in the latter part of the trading day, however, as crude oil prices surged after the White House confirmed it was not in talks with ?Iran despite diplomatic efforts by other countries.

Traders may also have been reluctant to make more significant moves ahead of Federal Reserve Chairman Kevin Warsh’s speech at the Jackson Hole economic symposium on Friday.

On the U.S. economic front, a report released by the Labor Department unexpectedly showed a modest decline in first-time claims for U.S. unemployment benefits in the week ended August 22nd.

The Labor Department said initial jobless claims dipped to 203,000, a decrease of 4,000 from the previous week’s revised level of 207,000.

Economists had expected jobless claims to inch up to 208,000 from the 206,000 originally reported for the previous week.

Commodity, Currency Markets

Crude oil futures are sliding $0.73 to $82.80 a barrel after jumping $1.30 to $83.53 a barrel on Thursday. Meanwhile, after rising $10.70 to $4,664 an ounce in the previous session, gold futures are falling $18.20 to $4,645.80 an ounce.

On the currency front, the U.S. dollar is trading at 159.62 yen versus the 159.39 yen it fetched at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1640 compared to yesterday’s $1.1651.

Asia

Asian stocks ended mixed on Friday as investors looked for greater clarity over whether talks between Iran and Qatar might open the Strait of Hormuz and reduce supply disruptions from the Middle East war.

Traders also awaited Federal Reserve Chairman Kevin Warsh’s speech at the Jackson Hole economic symposium later in the day for clues regarding potential interest rate hikes this year.

The U.S. dollar index was little changed near a one-week high against major peers while U.S. Treasury yields inched up slightly ahead of Warsh’s speech.

Gold edged up marginally to $4,608 an ounce and was on course for its strongest monthly advance since 1999 in the wake of the Treasury’s plan to keep bond yields down.

Brent crude futures fell half a percent to $88.14 a barrel and were on track to snap a two-week winning streak amid improving supply prospects through the Strait of Hormuz.

China’s Shanghai Composite Index edged down 0.1 percent to 3,952.18 as power equipment stocks such as Sungrow and Sieyuan Electric tumbled in the wake of a new U.S. order targeting certain foreign-made power equipment.

Hong Kong’s Hang Seng Index fluctuated before finishing marginally higher at 25,584.79.

Japanese markets advanced as tech and chip stocks followed their U.S. peers higher.

The yen edged lower for the fifth consecutive session against the dollar even as data showed underlying inflation in Tokyo accelerated for a third consecutive month in August, bolstering the case for a September Bank of Japan rate hike.

The Nikkei 225 Index rose 0.4 percent to 66,405.56, while the broader Topix Index closed up 0.7 percent at 4,146.71.

While security software firm Trend Micro soared 5.9 percent, chip-related heavyweight Advantest jumped about 2 percent.

Kioxia Holdings plunged 8.8 percent after the memory chip maker announced plans to construct a new production facility at its plant in northern Japan.

Seoul stocks tumbled amid concerns over U.S. semiconductor tariffs and caution before the Jackson Hole meeting.

The Kospi Index slumped 1.8 percent to 6,788.88, snapping its three-day losing streak after reports suggested that Washington is considering a new tariff on imported semiconductors. Samsung Electronics lost 3.4 percent and SK Hynix plummeted 4.4 percent.

Australian markets rose notably, with mining, consumer staples and technology stocks leading the surge. The benchmark S&P/ASX 200 Index climbed 0.6 percent to 9,092.30, while the broader All Ordinaries Index settled 0.6 percent higher at 9,294.30.

Across the Tasman, New Zealand’s benchmark S&P/NZX-50 Index fell 0.8 percent to 13,768.18, extending losses from the previous session.

Europe

European stocks have moved higher on Friday as investors await Federal Reserve Chair Kevin Warsh’s speech in Jackson Hole later today for fresh guidance on inflation, interest rates and recent bond market volatility.

The pan-European STOXX 600 Index is up by 0.5 after losing 0.7 percent on Thursday amid concerns about political instability in France and hawkish signals from ECB policymakers.

The French CAC 40 Index is up by 1 percent, the German DAX Index is up by 0.6 percent and the U.K.’s FTSE 100 Index is up by 0.1 percent. The euro held steady against the dollar as markets reassess the ECB outlook.

In corporate news, EssilorLuxottica shares have rallied as the French eyewear manufacturer commenced a new program to repurchase up to 5 million shares.

Lenders BNP Paribas, Credit Agricole and Societe Generale have also risen after falling sharply in the previous session on worries about fiscal and political uncertainty as a key presidential debate got underway.

Austrian constriction firm Strabag has shown a substantial move to the upside after raising its 2026 outlook.

U.S. Economic News

MNI Indicators is due to release its report on Chicago-area business activity in the month of August at 9:45 am ET. The Chicago business barometer is expected to rise to 59.0 in August from 57.6 in July, with a reading above 50 indicating growth.

At 10 am ET, Federal Reserve Chairman Kevin Warsh is scheduled to delivery keynote remarks at the 2026 Jackson Hole Economic Policy Symposium.

The University of Michigan is also due to release its revised reading on consumer sentiment in the month of August at 10 am ET. The consumer sentiment index for August is expected to be unrevised from the preliminary reading of 51.0, which was down from 55.2 in July.