US stock futures were little changed on Friday as investors braced for Federal Reserve Chair Jerome Powell’s address at the central bank’s annual symposium in Jackson Hole, Wyoming. Futures contracts tied to the three major indexes were all trading near breakeven. In regular trading on Thursday, the major averages initially rallied on the back of Nvidia’s strong quarterly results, before reversing lower as investors booked profits and turned cautious ahead of Powell’s remarks. The Dow fell 1.08%, the S&P 500 dropped 1.35% and the Nasdaq Composite tumbled 1.87%, with all 11 S&P sectors ending lower led by technology, communication services and consumer discretionary. Investors will also assess US consumer sentiment data for August, while there are no major companies reporting earnings on Friday. 

Summary for 25.08.2023 

  • Stock markets around the globe slid as nerves grew, with Wall Street taking a tumble overnight and Japan’s Nikkei dropping 2% in the Asian morning. 
  • Treasury yields stabilized after further upward pressure as traders await Jerome Powell’s speech for clues on the interest-rate outlook. 
  • The dollar index rose above 104 on Friday, hitting its highest levels in eleven weeks and on track to advance for the sixth straight week as investors braced for Federal Reserve Chair Jerome Powell’s Jackson Hole speech for clues on the path for US monetary policy. 
  • New orders for manufactured durable goods in the US plummeted by 5.2% in July 2023, following a downwardly revised growth of 4.4% in June and exceeding market expectations for a 4.0% decline. 
  • The GfK Consumer Confidence indicator in the United Kingdom rose to -25 in August 2023 from -30 in July, beating forecasts for a slight improvement to -29 as easing inflation reduced pressure on household spending. 
  • Equity markets in Japan, Australia, South Korea and China all slipped with declines prominent in Hong Kong-listed technology stocks, echoing heavy selling in US tech shares on Wednesday. 
  • Asian equity markets fell on Friday, tracking Wall Street lower as investors braced for Fed Chair Powell’s Jackson Hole address, where he could guide markets on the path for US monetary policy. Investors also took profits on tech stocks after Nvidia reported strong quarterly numbers. Shares in Australia, Japan, South Korea, Hong Kong and mainland China all declined. 
  • Supply chains are getting more complex, with retailers sourcing from many more locations in Asia than they used to. 
  • WTI crude futures steadied above $79 per barrel on Friday but were still set to decline for the second straight week, weighed down by a weakening demand outlook and a strong dollar.