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Stock index futures were slightly lower on Monday, after the Dow notched a record close on Friday following Federal Reserve Chair Jerome Powell’s remarks at Jackson Hole.
S&P 500 futures (SPX) -0.1%, Nasdaq 100 futures (US100:IND) -0.1%, and Dow futures (INDU) -0.1%.
The 10-year Treasury yield (US10Y) was flat at 4.27%. The 2-year yield (US2Y) rose 1 basis point to 3.72%.
“Powell’s speech at Jackson Hole last week was classic Powell. That is not a terribly good thing. Powell signaled an increased probability of a September rate cut to counter the damage of trade taxes on the U.S. economy,” UBS’ Paul Donovan said.
Markets liked that. But this was essentially the “data dependent” mantra padded with additional rhetoric, Donovan added.
“Markets ended last week in a buoyant mood as a dovish tilt by Powell at Jackson Hole left investors increasingly confident on upcoming Fed easing. While Fed news will continue to draw attention this week, the focus will also shift to a slew of inflation releases,” Deutsche Bank’s Peter Sidorov said.
Investors will also keep their eye on the Nvidia (NVDA) results slated to come on Wednesday after the market close.
“Finally, the big event in corporate earnings will be Nvidia’s results, which come as tech stocks had seen their biggest five-day pullback since April prior to Friday’s rally,” Sidorov added.
The July PCE price index will come in on Friday.
