Nvidia Boosts AI Optimism Amid US Stock Market Caution
US stock futures edged lower on Friday as investors awaited signals from Federal Reserve policy at the Jackson Hole symposium. Despite some optimism sparked by strong performances from Nvidia and Salesforce, the cautious start comes after heavy buying in chip and software stocks the previous session.
Nvidia's outlook offered evidence that spending on AI infrastructure remains robust, easing concerns about a waning investment boom. The upbeat forecast was seen as a positive sign for earnings growth in technology stocks.
Treasury yields rose amid solid job market reports, which boosted expectations of another Fed rate hike before the end of 2026. Traders are pricing in no change to borrowing costs in September but see a 74% chance that the Fed will raise interest rates by at least 25 basis points by December.
Kevin Warsh's speech as Fed chair is expected to provide fresh clues on policy, following criticism over his lack of clarity regarding his views on the economy and future interest rate path. The address comes amid a combination of higher-than-expected PCE and resilient economic growth.