U.S. Stocks Set for Cautious Open Ahead of Nvidia Earnings and Jackson Hole: Dow Jones, S&P, Nasdaq, Wall Street Futures

U.S. stock futures pointed to a broadly flat start on Monday, suggesting Wall Street could struggle for direction as investors look ahead to Nvidia’s (NASDAQ:NVDA) quarterly results and the Jackson Hole economic symposium later this week.

The muted outlook follows Friday’s rebound, when the major indices recovered some ground after Thursday’s sharp sell-off. Despite those gains, all three benchmarks still recorded sizeable losses for the week.

Treasury Buyback Report Supports Futures and Bonds

Futures had initially indicated a weaker open before recovering following a CNBC report about the Treasury Department’s recently announced plans to increase buybacks of longer-dated government debt.

Citing two senior Treasury officials, CNBC reported that the department could draw on its nearly $1 trillion General Account to help finance plans to double the scale of its debt repurchases.

Treasury yields moved lower following the report, with the 10-year yield retreating after climbing substantially during the previous two sessions amid renewed concerns over U.S. government debt.

The decline in yields helped stabilise equity futures, although investors remained reluctant to make larger moves ahead of several important events.

Nvidia Earnings and Jackson Hole Take Centre Stage

Nvidia’s (NASDAQ:NVDA) upcoming quarterly earnings are expected to be one of the week’s most closely watched corporate events, while Federal Reserve Chair Kevin Warsh’s appearance at the Jackson Hole economic symposium could provide further insight into the direction of monetary policy.

“[Fed Chair Kevin] Warsh is scheduled to deliver keynote remarks on Friday, and markets will be looking for greater clarity on both his assessment of inflation and the broader “regime change” he has advocated at the Fed,” said Daniela Hathorn, Senior Market Analyst at Capital.com.

She added, “He has been reluctant to provide conventional forward guidance, meaning the speech may focus more heavily on the Fed’s reaction function and longer-term philosophy than explicitly signaling what policymakers will do in September.”

With little major U.S. economic data due immediately, trading activity could remain restrained before Wednesday’s closely followed consumer inflation figures.

Wall Street Rebounded on Friday but Fell for the Week

U.S. equities recovered on Friday following the previous session’s heavy losses, with all three major indices finishing firmly higher.

The Dow Jones Industrial Average climbed 517.80 points, or 1%, to 53,277.01. The Nasdaq advanced 113.29 points, or 0.4%, to 26,180.45, while the S&P 500 added 33.21 points, or 0.4%, to finish at 7,674.37.

However, Friday’s recovery was insufficient to erase the week’s losses. The Nasdaq dropped 2.1% over the week, the S&P 500 declined 1.4% and the Dow fell 0.9%.

Part of Friday’s advance appeared to reflect bargain hunting following Thursday’s sell-off, when rising crude oil prices and a renewed increase in Treasury yields weighed heavily on equities.

Oil and Iran Conflict Remain Market Risks

Crude prices fluctuated during Friday’s session but largely retained their recent gains. U.S. crude futures were little changed on the day after climbing more than 6% over the week.

Concerns surrounding the Middle East remained a significant factor, particularly as the Trump administration shifts its focus towards stronger economic measures against Iran rather than additional large-scale U.S. military action.

The prospect of a prolonged confrontation has increased uncertainty around energy markets and the broader inflation outlook.

“Next week’s results from Nvidia could put some of the focus back on corporate earnings but, as we head towards the autumn, a chill has started to descend for markets,” said Dan Coatsworth, head of markets at AJ Bell.

He added, “Investors will be looking for a comfort blanket when Federal Reserve chair Kevin Warsh addresses the Jackson Hole meeting at the end of this month.”

Brokerage and Gold Stocks Lead Friday’s Gains

Several sectors recorded strong advances during Friday’s recovery. Brokerage stocks were among the standout performers, pushing the NYSE Arca Broker/Dealer Index up 3.7% to a record closing high.

Gold miners also rallied as bullion prices climbed sharply, sending the NYSE Arca Gold Bugs Index 2.5% higher to its strongest closing level in four months.

Airline, healthcare and pharmaceutical shares also posted notable gains, while utility stocks moved lower.

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