Stock futures are flat following the S&P 500’s third straight losing day

Traders on the floor of the NYSE, Aug. 4, 2022.

Source: NYSE

Stock futures were flat in overnight trading Tuesday as investors await more guidance from Federal Reserve Chairman Jerome Powell on the central bank’s tightening path.

Futures on the Dow Jones Industrial Average dipped just 15 points. S&P 500 futures and Nasdaq 100 futures were both little changed.

Both the Dow and the S&P 500 declined for a third straight session Tuesday amid relatively thin trading volumes. The tech-heavy Nasdaq Composite finished Tuesday little changed. The S&P 500 is about flat on the month after rallying more than 9% in July.

The three-day Jackson Hole economic symposium starts Thursday with Powell slated to speak Friday morning. Fed watchers expect him to reinforce the central bank’s goal of squashing inflation and keeping expectations about future prices gains in check.

“Financial markets will remain in choppy waters until Fed Chair Powell’s Jackson Hole speech on Friday,” said Edward Moya, senior market analyst at Oanda. “He may struggle to convince markets that he is comfortable with tightening policy and triggering a recession. The economy is clearly slowing but it is still too early for the Fed to signal that they will be less aggressive with tightening policy.”

Investors will also monitor incoming data to gauge the health of the economy. Durable goods and pending home sales are on deck for Wednesday.

.

Leave a Comment

Your email address will not be published. Required fields are marked *