Dow futures higher; Jackson Hole in spotlight, Palo Alto surges
investing.comInvesting.com — U.S. stock futures rose Monday, rebounding after a negative week with investors looking for guidance from the Federal Reserve’s annual get-together at Jackson Hole.
By 06:30 ET (10:30 GMT), the Dow futures contract was up 125 points, or 0.4%, S&P 500 futures traded 20 points, or 0.5% higher, and Nasdaq 100 futures climbed 85 points, or 0.6%.
The main equities indices retreated last week as investors digested rising bond yields and economic weakness out of China.
The blue-chip Dow Jones Industrial Average dropped 2.2% last week, while the broad-based S&P 500 fell 2.1%, and the tech-heavy Nasdaq Composite lost 2.6%, both recording their third consecutive losing week.
However, the new week has started with a more positive tone, helped by the news that the People’s Bank of China has cut its one-year loan prime rate by 10 basis points to 3.45%.
While more had been expected, including a cut of the important five-year rate, this comes after the PBOC cut its short-term loan rates, as well as its medium-term lending facility rates last week, and shows Beijing is actively looking to support its faltering economy.
The U.S. Federal Reserve is also very much the focus of attention, with its policymakers set to gather at an annual symposium in Jackson Hole, Wyoming at the end of the week.
Friday’s speech by Chair Jerome Powell will be the highlight as investors look for clarity on the economic outlook and the future path of interest rates.
This comes after last week’s minutes of the central bank’s July meeting showed that most policymakers are still concerned about upside risks to inflation, indicating that further rate hikes cannot be ruled out.
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