S&P 500 and Nasdaq futures edged lower on Friday, giving back part of a tech-driven rally, as investors waited on Federal Reserve Chair Kevin Warsh's first Jackson Hole speech. European shares bounced but still closed out a third straight week of losses.
Futures tied to the S&P 500 and Nasdaq slipped on Friday after Nvidia's stellar forecast sparked a technology rally in the previous session, while markets waited on Warsh's much-anticipated Jackson Hole appearance. At 5:46 a.m. ET, S&P 500 E-minis were down 4.75 points, or 0.06%, and Nasdaq 100 E-minis were down 92.25 points, or 0.32%, while Dow E-minis rose 59 points, or 0.11%.
Markets await Warsh's Jackson Hole debut
All eyes are on the Fed chief's first speech at the central bank's annual gathering in Wyoming, with investors ready to scrutinize any hints on monetary policy amid a volatile bond market and mixed inflation data this month. According to Reuters: "Warsh does not need to pre-commit to a September hike at Jackson Hole", analysts at StoneX said, adding he needs only to establish that inflation failing to decline in the weeks or months ahead would be enough to justify tightening.
Three Fed officials issued inflation warnings on Thursday, with at least two reinstating their stance to raise interest rates. Money market participants are pricing in a 33% chance of an interest rate hike in September, according to CME's FedWatch tool.
Chip stocks pull back after Nvidia-led rally
Chip stocks retreated after Thursday's rally, sparked by Nvidia's forecast that indicated the AI-driven rally had room to run. On Friday, Nvidia slipped 1% in premarket trading, while Micron Technology and Intel each fell 2.2%.
Marvell Technology lost 8.6% on doubts over the timing of revenue from its AI chip agreement with Alphabet's Google, despite raising its 2027 revenue forecast. Still, if Friday's gains hold through the close, Wall Street's main indexes could claw back ground lost last week after surging bond yields hammered stocks.
European shares bounce but log a third weekly loss
Across the Atlantic, the pan-European STOXX 600 advanced 0.6% on Friday, though the benchmark remained on track for its third consecutive weekly decline, its longest losing streak since April 2025. The index was still headed for a weekly loss of about 0.4%, pressured by elevated interest rates, volatile energy prices and mixed regional economic data. Germany's DAX rose 0.5%, and London's FTSE 100 gained 0.4%.
A renewed surge in global sovereign bond yields drove the losses earlier in the week, pushing borrowing costs across the euro zone back toward multi-month peaks, though yields pulled back slightly mid-week following technical debt-buyback announcements in the U.S. Given the tight correlation between U.S. Treasuries and European sovereign debt, any hawkish shift in Warsh's tone could trigger a fresh leg higher in global yields, further tightening financial conditions for European corporates.
Sources: Investing.com, Investing.com
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