U.S. stock futures edged higher Friday as investors awaited Federal Reserve Chair Jerome Powell’s keynote address at the Jackson Hole symposium for guidance on interest rate policy.

S&P 500 and Nasdaq futures saw modest gains in premarket trading, reflecting cautious optimism ahead of the highly anticipated speech.

Powell’s remarks, scheduled for 10 a.m. ET, are expected to address the Fed’s approach to balancing softening labor market conditions against persistent inflation concerns.

Markets currently price a 71.3% probability of a September rate cut, down from 85.4% last week, according to the CME FedWatch Tool.

In early market moves, Nvidia shares declined 1.1% following reports the chipmaker asked Foxconn to pause work on its H20 AI chip for China.

Alphabet gained 1.2% after securing a $10 billion cloud computing deal with Meta Platforms, which saw its shares rise 0.2%.

The speech comes at a critical juncture, with Powell likely to echo themes from his 2022 inflation-fighting message while acknowledging recent labor market softening.

Analysts suggest his tone could significantly influence near-term market direction and rate expectations.

BNY strategist Geoff Yu noted Powell faces the challenge of addressing economic crosscurrents without committing prematurely to policy moves.

The outcome will shape whether markets continue expecting gradual easing or recalibrate for a more cautious Fed approach.

Source: Reuters.