Federal Reserve Chairman Jerome Powell has a warning for financial markets as policymakers continue their fight to battle back inflation.
U.S. stocks pulled back sharply on the initial headlines which include speculation of further rate hikes.
Fresh inflation check
The Federal Reserve’s favorite inflation gauge signaled a glimmer of hope that rising prices may be peaking, yet it likely won’t make a major difference for consumers.
Stocks drift ahead of Fed Chair Powell’s speech
U.S. stocks struggled for direction as investors await a 10am ET speech from Federal Reserve Chairman Jerome Powell. He’s expected to address the state of the economy and the battle to bring inflation down. In commodities, oil slipped to the $92 per barrel level.
Elsewhere, Electronic Arts is active after reports swirled that the company may have been eyed by Amazon for a takeover. EA telling FOX Business: “We don’t comment on rumors and speculation relating to M&A.”
Electronic Arts Inc.
Moderna sues Pfizer, BioNTech
Moderna is filing patent infringement lawsuits against Pfizer and BioNTech in the U.S. and the Regional Court of Düsseldorf in Germany.
“We are filing these lawsuits to protect the innovative mRNA technology platform that we pioneered, invested billions of dollars in creating, and patented during the decade preceding the COVID-19 pandemic,” said Moderna Chief Executive Officer Stéphane Bancel.”
Stock futures slip ahead of Powell’s Jackson Hole speech
U.S. equity futures were trading lower ahead of Chairman Jerome Powell’s speech at the Fed gathering in Jackson Hole.
The major futures indexes suggest a decline of 0.3% ahead of the opening bell.
Oil is heading for a winning week. West Texas Intermediate futures traded around $93.00. Brent crude futures were around $100.00 a barrel.
The Federal Reserve chairman’s remarks to investors and economists will be the marque event at the Fed’s annual symposium at Jackson Hole.
People will be looking for clues on where the Fed is heading on interest rates, mainly how big and for how long. With inflation around 9%, Powell will likely stress that the Fed is determined to bring it down to its 2% target, no matter what it takes.
Traders will also be watching for data on income & spending, the core PCE index and consumer sentiment.
Shares of Gap and Dell were mixed in premarket trading following quarterly results.
In Asia, the Nikkei 225 in Tokyo rose 0.6%, the Hang Seng in Hong Kong gained 1.0% and China’s Shanghai Composite Index shed 0.3%.
On Wall Street, the S&P surged 1.4% to 4,199.12 for its biggest daily increase in nearly two weeks.
The Dow Jones Industrial Average rose 1% to 33,291.78. The Nasdaq composite climbed 1.7% to 12,639.27.Also Thursday.
The government reported the U.S. economy didn’t contract by as much as previously thought during the spring. It shrank 0.6% on an annualized basis, less than the previous 0.9% estimate.
Fed’s Powell in Jackson Hole spotlight with speculation on rates
It may be considered Jerome Powell’s most significant speech of the year.
The Federal Reserve chairman’s remarks to investors and economists will be the marque event at the Fed’s annual symposium at Jackson Hole. People will be looking for clues on where the Fed is heading on interest rates, mainly how big and for how long.
Oil heads for winning week
Oil prices rose Friday on signs of improving fuel demand.
The market is waiting for clues from the Federal Reserve chairman on the outlook for rate hikes in a speech later in the day.
West Texas Intermediate futures traded around $93.00. Brent crude futures were around $100.00 a barrel.
Both contracts slumped about $2 on Thursday.
The benchmark oil contracts are on track for gains of around 3% for the week.
Regular gasoline continues to move lower while diesel rises
The average price of a gallon of gasoline slipped on Friday to $3.869, according to AAA. Thursday’s price was $3.878.
The price dropped below $4 for the first time since March more than a week ago, when the price fell to $3.99. Gas has been on the decline since hitting a high of $5.016 on June 14.
Diesel has gained for a third straight day at $5.014 per gallon.
Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were lower Friday morning
Bitcoin was trading at around $21,000, after snapping a two-day winning streak.
Bitcoin is off more than 9% month-to-date and down more than 53% year-to-date.
Ethereum was trading at approximately $1,600. Dogecoin was trading at 6 cents.