US stock futures traded slightly volatile as investors awaited earnings reports from major retailers and the Federal Reserve conference this weekend.
Consumer spending accounts for approximately 70% of the US economy. Therefore, results from Home Depot, Lowe’s, Walmart, and Target will offer critical clues about both consumer confidence and the health of the housing market.
In notable movements, Intel shares rose 6.3%; the company’s $2 billion investment from SoftBank was positively received by the market. Additionally, Palo Alto Networks gained 5.6%; the company projected better-than-expected revenue thanks to strong demand for AI-powered cybersecurity solutions.
Statements from Fed Vice Chair Michelle Bowman are also eagerly awaited. Bowman argues that at least three interest rate cuts are needed to support the labor market. Markets, however, are pricing in two cuts this year; the first is expected in September.
The most critical development of the week will be the annual Fed symposium to be held in Jackson Hole from August 21-23.
Powell’s messages will be closely watched for monetary policy and the economic outlook.
