Nasdaq Futures Slip as Tech Rally Pauses Ahead of Warsh Speech
Futures tied to the Nasdaq 100 slipped lower on Thursday as a rally in tech stocks cooled off ahead of Federal Reserve Chair Kevin Warsh's speech at Jackson Hole. The central bank chief has been tight-lipped about the interest rate outlook, but his comments could provide insight into how the Fed plans to approach monetary policy after mixed inflation data this month.
Analysts at StoneX said that Warsh does not need to pre-commit to a September hike at Jackson Hole, but rather establish that inflation failing to decline in the weeks or months ahead is sufficient for tightening. This would close the gap with his committee and preserve flexibility to hold interest rates in September.
In contrast, three Fed officials on Thursday issued inflation warnings, with at least two reinstating their stance to raise interest rates. Money market participants are pricing in a 35.9% chance of a rate hike in September, according to CME's FedWatch tool.