Markets Hold Steady as Investors Anticipate Key Fed Speech

Wall Street's major indexes are set to open largely unchanged after a strong week, as investors await Federal Reserve Chair Jerome Powell's speech at Jackson Hole for potential rate-cut signals. The market has been buoyed by positive economic data, although concerns about recession and unemployment persist.

Wall Street's major indexes are set to open largely unchanged after recording their best week of the year. Investors are eagerly awaiting Federal Reserve Chair Jerome Powell's speech at Jackson Hole, hoping for signs of a rate cut.

Last week, strong economic data including consumer price index readings and retail sales reports alleviated investor worries about a recession, despite previous concerns triggered by a rise in the U.S. unemployment rate for July.

Goldman Sachs has lowered the recession odds for the United States to 20% from 25%, following positive jobless claims and retail sales data. At 08:25 a.m. ET, Dow E-minis were slightly up by 13 points, S&P 500 E-minis up by 6.25 points, and Nasdaq 100 E-minis up by 27.5 points.

Minutes from the Fed's last policy meeting are expected on Wednesday, with Powell addressing the economic symposium in Jackson Hole on Friday. Investors are on the lookout for any potential signals of a September rate cut.

Minneapolis Fed President Neel Kashkari and other Fed officials have indicated that rate cuts are a point of discussion due to a weakening labor market. Traders currently see a 73.5% chance of a 25 basis point rate cut in September.

In the corporate realm, Palo Alto Networks, Target, and Lowe's are set to release earnings. Advanced Micro Devices' plans to acquire ZT Systems have boosted its stock by 2.6%. Conversely, Estee Lauder and B. Riley Financial have experienced declines due to unfavorable forecasts and investment losses respectively.