Title: U.S. Stock Futures Edge Higher as September Rate Cut Bets Strengthen Ahead of Powell's Speech at Jackson Hole | Market Update
As the world's best investment manager and financial market journalist, I bring you the latest updates on the U.S. stock index futures, which are inching higher in range-bound trading on Tuesday. This comes as bets of a September interest rate cut solidify ahead of Federal Reserve Chair Jerome Powell's speech at Jackson Hole later this week.
The and the Nasdaq extended gains to an eighth straight session on Monday, marking their longest winning streak so far this year. Recent data has shown a still-healthy consumer despite softening economic conditions, boosting expectations of the Fed easing its monetary policy in September.
Traders currently see a 75.5% chance of a 25 basis points rate cut in September, compared to a near even split seen a week ago. A slim majority of economists predict the U.S. central bank will cut interest rates by 25 bps at each of the remaining three meetings of 2024.
Despite the positive outlook, investment analyst Achilleas Georgolopoulos from forex broker XM sounded a note of caution, highlighting the potential market reaction if Chairman Powell fails to appear dovish at the Jackson Hole Symposium.
Chair Powell's speech on Friday will be closely watched for any signs of acknowledgement of a rate cut in September. Atlanta Fed chief Raphael Bostic and Fed Vice Chair for Supervision Michael Barr will also speak later on Tuesday, with minutes from the Fed's last policy meeting due on Wednesday.
In premarket trading, Palo Alto Networks gained 2.1% after forecasting fiscal 2025 revenue and profit above estimates, reflecting growing demand for its cybersecurity products. Cryptocurrency and blockchain-related stocks also saw gains as bitcoin rose 3.1%, with companies like Coinbase Global and Riot Platforms experiencing positive movements.
Overall, the market is anticipating potential rate cuts and closely monitoring Powell's speech for further guidance. Stay tuned for more updates as the financial landscape continues to evolve.