Last Updated: 4:08 PM EST
Stock indices finished today’s trading session in the green. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 1.17%, 1.15%, and 1.14%, respectively. This comes after Federal Reserve Chair Jerome Powell hinted that the Fed might lower interest rates in September during his speech at the Jackson Hole Economic Symposium. As a result, investors are now pricing in a 34.5% chance of a 50 basis-point rate cut compared to yesterday’s 24%.
Powell said future rate cuts will depend on how the economy performs, but he expects inflation to keep moving towards the 2% target as the Fed begins to ease its policies. He also noted that the current interest rate gives the Fed enough flexibility to handle risks like a possible slowdown in the job market.
In other news, the Census Bureau released its United States New Home Sales data for July, which came in at 739,000. For reference, forecasters were expecting a print of 624,000. This was higher than last month’s report of 617,000. Furthermore, house prices saw an increase. Indeed, the median sales price was $429,800 in July compared to $417,300 in June.
U.S. Building Permits also beat expectations, with a print of 1.406 million compared to the forecast of 1.396 million. However, this was a decrease from the prior month’s report, which came in at 1.454 million, equating to a 3.3% month-over-month decline.
First Published: 2:51 AM EST
U.S. futures inched higher on Friday morning as investors awaited clues about interest rate cuts from Fed Chair Jerome Powell’s speech, scheduled for later today. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were up by about 0.56%, 0.36%, and 0.24%, respectively, at 2:32 a.m. EST, August 23.
All major indices ended lower in Thursday’s trading session, primarily due to a decline in large-cap tech stocks. Nvidia (NVDA) and Tesla (TSLA) fell by 3.7% and 5.7%, respectively. The S&P 500, the Dow Jones, and the Nasdaq Composite declined 0.89%, 0.43%, and 1.67%, respectively.
In major news, Snowflake (SNOW) stock was down 15% despite beating Q2 estimates. Further, Intel (INTC) shares dropped by 6.1% amid concerns about the company’s progress in building two new chip fabrication plants in Germany. However, Peloton (PTON) surged over 35% after reporting its first year-over-year quarterly revenue increase in over two years.
Turning to economic reports, investors are eagerly awaiting Powell’s speech at the Jackson Hole symposium later today. It is expected that Powell will hint at the Fed’s plans to start easing its policies in September. However, he is likely to provide limited details on the frequency and extent of these adjustments. Additionally, the U.S. New Home Sales report will also be released today.
Meanwhile, the U.S. 10-year treasury yield was down, floating near 3.844% at the time of writing. At the same time, WTI crude oil futures are trending lower, hovering near $73.02 per barrel as of the last check.
Elsewhere, European indices are expected to open mixed on Thursday morning as investors look ahead to the much-awaited Powell’s speech.
Asia-Pacific Markets Traded Mixed on Friday
Asia-Pacific indices were mixed today. Japan’s accelerating core inflation rate, hitting 2.7% in July, fueled investor concerns. Further, escalating geopolitical tensions and trade disputes between China and other major economies weighed on Chinese stocks.
At the time of writing, Hong Kong’s Hang Seng index and China’s Shanghai Composite index were down 0.47% and 0.05%, respectively. However, China’s Shenzhen Component Index was up 0.11%. Further, Japan’s Nikkei and Topix indices traded higher by 0.04% and 0.52%, respectively.
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