Nasdaq futures slip after tech rally

Nasdaq futures declined on Friday following a technology rally driven by Nvidia's impressive forecast earlier in the week. The market was anticipating Federal Reserve Chair Kevin Warsh's presentation at the Fed's annual gathering in Jackson Hole. Analysts noted that Warsh should establish the need for rate hikes if inflation does not decline, rather than committing to a specific September hike.

Fed officials recently signaled a potential rate increase in September, with a 33% probability according to CME's FedWatch tool. Chip stocks retreated after Nvidia's rally, but overall market indexes were poised for growth if gains persisted. Nvidia's stock slipped 1% in premarket trading, while Micron Technology and Intel fell 2.2% each.

Marvell Technology dropped 8.6% due to uncertainty surrounding AI chip revenue from Alphabet's Google. PayPal experienced a 13.3% decline after a consortium led by Advent and Stripe withdrew their acquisition bid. Gap shares rose 13.5% after appointing a veteran as Old Navy's new CEO and updating its profit forecast. Dow E-minis opened higher by 59 points, while S&P 500 E-minis were down 4.75 points.

The Nasdaq 100 E-minis fell 92.25 points, or 0.32%. On Friday, the final University of Michigan consumer sentiment data for August and Chicago Fed President Austan Goolsbee's address would also be examined.