Stock futures were flat in overnight trading on Tuesday as investors awaited further guidance from Federal Reserve Chair Jerome Powell on the central bank’s narrow path.
Dow Jones Industrial Average futures fell just 15 points. S&P 500 and Nasdaq 100 futures contracts changed slightly.
The Dow Jones and S&P 500 fell for the third consecutive session on Tuesday on relatively thin trading volumes. The heavy Nasdaq Composite Index ended Tuesday with little change. The S&P 500 is almost flat for the month after rising more than 9% in July.
The three-day Jackson Hole Economic Symposium begins Thursday, and Powell is scheduled to speak Friday morning. Fed watchers expect it to bolster the central bank’s goal of squashing inflation and keeping expectations of future price gains in check.
“Financial markets will remain in choppy waters until Federal Reserve Chairman Paul Jackson Hole’s speech on Friday,” said Edward Moya, chief market analyst at Oanda. “He may struggle to convince markets he is comfortable with tightening policy and triggering a recession. The economy is clearly slowing but it is still too early for the Federal Reserve to suggest it will be less aggressive as policy tightens.”
Investors will also monitor incoming data to gauge the health of the economy. Durable goods and pending home sales on board on Wednesday.
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