Markets Hold Steady as Powell’s Jackson Hole Speech Looms

U.S. stock futures were flat Thursday night as traders positioned ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at Jackson Hole on Friday. Investors are hoping for clarity on the Fed’s interest rate path, with markets currently pricing in a 75% chance of a quarter-point rate cut in September, according to CME FedWatch.

Dow futures gained 50 points (0.1%)

S&P 500 futures rose 0.1%

Nasdaq 100 futures climbed 0.1%

Wall Street has been under pressure this week. The S&P 500 fell for a fifth straight session, sliding 0.4% Thursday. The Nasdaq dropped 0.34%, while the Dow declined 153 points (0.34%). All three indexes remain on track for weekly losses.

Why Powell Matters Now

Markets are split between optimism for rate cuts and caution over inflation. A dovish tone from Powell could fuel a rebound, especially in small caps and value stocks, which have recently benefited from rate-cut hopes. A more hawkish outlook, however, could dampen sentiment, extending this week’s weakness in equities.

Jim Caron of Morgan Stanley Investment Management told CNBC’s Closing Bell:

> “Powell will try to explain and justify a process of cutting rates starting in September. That should be supportive for markets.”

Beyond the Fed: Earnings Movers

Intuit fell nearly 6% in after-hours despite beating Q4 estimates.

Zoom gained 5% on better-than-expected results.

Workday dropped about 6% after issuing cautious Q3 guidance.

Big Tech & Cloud: Google Wins Meta Deal

Alphabet’s Google Cloud secured a six-year, $10 billion contract with Meta, underscoring the intensifying battle among hyperscalers for AI and social media infrastructure dominance.

What’s Next?

Friday’s Jackson Hole speech may set the tone not just for interest rates, but for market sentiment into September and beyond. If Powell signals an imminent easing cycle, it could reignite risk appetite across equities and crypto. But any hesitation could reinforce fears that the Fed is still wary of inflationary pressures.