US futures ease as hedge funds await Warsh’s Jackson Hole rate signal
TOP STORY: US equity futures edged lower and Treasury yields were broadly steady on Friday as investors held back from making major moves ahead of Federal Reserve Chair Kevin Warsh’s closely watched speech at the Jackson Hole symposium, according to a report by Bloomberg.
US equity futures fell lower and Treasury yields remained steady on Friday as investors refrained from major moves ahead of Federal Reserve Chair Kevin Warsh's anticipated speech at the Jackson Hole symposium, according to Bloomberg. Nasdaq 100 futures dropped by 0.3%, as excitement over Nvidia's positive outlook began to wane following a sharp rally in technology stocks on Thursday.
Shares of Marvell Technology plummeted over 7% in after-hours trading following the chipmaker's latest earnings release. Asian equities climbed by 0.2%, while European stocks also showed a modest upward trend.
Investors are closely watching Warsh's address at the Fed's annual gathering in Wyoming, hoping for crucial insights into the central bank's monetary policy direction. The focus is on how the Fed aims to strike a balance between persistent inflation and signs of a slowing economy. Treasury yields stayed close to Thursday's levels, having risen by two to three basis points the previous day.
The two-year Treasury yield, highly sensitive to Fed policy expectations, remained unchanged at 4.23%, while the 10-year yield hovered around 4.68%. The dollar showed minimal fluctuation as well.
The lack of trading activity indicated that investors were hesitant to make significant commitments before Warsh's speech. A more hawkish message from Warsh could prolong the recent decline in longer-term government bonds, while clearer guidance on the Fed's approach to inflation might help alleviate some pressure on long-term yields.
The Federal Reserve maintained its benchmark interest rate range at 3.5% to 3.75% during its latest meeting, though futures markets anticipate a quarter-point hike by year-end. Kansas City Fed President Jeff Schmid has suggested that monetary policy is not currently impeding economic growth. However, investors may not receive the explicit policy guidance they are seeking, as Warsh is known for avoiding detailed forward guidance.
Instead, he may use the Jackson Hole address to present early conclusions from five Fed task forces exploring various aspects such as communications, the central bank's balance sheet, economic data, productivity and employment, and its inflation framework.
Written by urgent.news from Hedgeweek's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
