US Futures Slip as Traders Await Warsh’s Jackson Hole Signal

U.S. equity futures fell as investors held back ahead of Federal Reserve Chair Kevin Warsh’s address at the annual Jackson Hole symposium in Wyoming. Nasdaq 100 futures were down about 0.3% on Friday after a strong technology rally the previous day. Chipmaker Marvell Technology dropped more than 7% in after-hours trading following its latest earnings. Asian equities rose about 0.2%, while European markets were set for a modestly higher open.

Treasury yields were mostly steady after small gains the prior session. The two-year yield was near 4.23% and the 10-year around 4.68%. The dollar was broadly flat. Trading volumes remained muted as funds and other market participants avoided building large positions before Warsh’s remarks.

Markets are watching Warsh’s speech for guidance on interest-rate policy and how the Fed plans to balance persistent inflation with signs of slowing growth. The Federal Reserve left its benchmark rate at 3.50%–3.75% at its last meeting. Futures markets are pricing in roughly a quarter-percentage-point increase by year-end.

Warsh has generally avoided detailed forward guidance. He may present early findings from five Federal Reserve task forces reviewing communications, the central bank’s balance sheet, economic data, productivity and employment, and the inflation framework.

Kansas City Fed President Jeff Schmid has indicated that monetary policy is not currently acting as a drag on the economy. Hedge funds and other investors often reduce position sizes ahead of high-profile central bank events to limit exposure to sudden market moves.