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US futures slip as investors wait for Fed chair Warsh at Jackson Hole
Nasdaq 100 futures fell 0.3%, while the two-year Treasury yield was little changed at 4.23% and the 10-year near 4.68%.
US equity futures were slightly lower and Treasury yields were broadly steady as investors held off on major positioning ahead of Federal Reserve Chair Kevin Warsh’s speech at the Jackson Hole symposium, according to Hedgeweek citing Bloomberg.
Nasdaq 100 futures slid 0.3% as optimism about Nvidia’s outlook cooled after a sharp technology rally on Thursday. Marvell Technology shares dropped more than 7% in after-hours trading following its latest earnings release, while Asian equities rose 0.2% and Europe was set for a modestly higher open.
Investors focused on what Warsh might signal about how the Fed plans to balance persistent inflation against signs of a slowing economy. Treasury yields were near Thursday’s levels after increasing 2 to 3 basis points across the curve the prior session, with the two-year yield at 4.23% and the 10-year around 4.68%, and the dollar was broadly flat.
The Fed’s last decision left its benchmark rate unchanged at 3.5% to 3.75%, while futures markets are currently pricing in a quarter-point increase by year end. Hedgeweek noted Kansas City Fed President Jeff Schmid said policy is not a drag on the economy, and that Warsh has generally avoided detailed forward guidance, though he could discuss early conclusions from five Fed task forces covering communications, the balance sheet, economic data, productivity and employment, and the inflation framework.
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