US Stocks Poised for Modestly Higher Open Amid Dovish Fed Comments
US stocks are poised for a modestly higher open on Friday after Fed Governor Christopher Waller's dovish comments calmed inflation fears ahead of the nonfarm payroll report. The market had been pricing in a higher likelihood of a September rate hike, but Waller's remarks saw this expectation drop to 50%, down from 63% just a day ago.
Waller noted that recent data points to some signs of disinflation and would favor leaving rates unchanged at the September policy meeting if upcoming reports supported this trend. The nonfarm payroll report is expected to show 56,000 jobs were added in August after a shock fall of 23,000 in the previous month.
The S&P 500 trades above its rising trend line, maintaining a constructive outlook, and buyers will look to push towards 7,820, creating fresh record highs. However, if support continues to hold, attention will turn to 7,300, the July low, ahead of 7,230, the June low.
Lululemon is falling 17% after posting second-quarter results that beat earnings expectations but missed on revenue, while AMC has jumped over 5% after its CEO slammed Robinhood over its stock tokens for AMC and others. Rare earth stocks are moving higher on reports that some Chinese firms halted U.S. shipments due to geopolitical concerns.