Today's trading session commenced with an optimistic outlook for US stock futures, as all major indices—the Nasdaq, Dow, and S&P 500—registered gains. This upward trend precedes a highly anticipated speech by Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Policy Symposium, an event closely watched by investors for indications on the nation's monetary policy direction, particularly concerning interest rates and inflation. The market's positive opening also comes amidst varied performances from individual companies, with EpicQuest Education, Zoom Communications, and Azitra Inc. drawing particular attention due to recent financial disclosures and strategic corporate developments.
On Friday, the US stock futures exhibited a positive momentum, rebounding from the previous day's downturns. All key benchmark indices showed an increase in their futures trading. Market participants are primarily focused on the impending remarks from Federal Reserve Chairman Jerome Powell at the Jackson Hole Economic Policy Symposium, which commenced on Thursday. His address is expected to cover critical aspects of the labor market, inflationary pressures, and the potential path of interest rates.
The central theme for the 2025 symposium, \"Labor Markets in Transition: Demographics, Productivity, and Macroeconomic Policy,\" underscores the current economic landscape. Reflecting market expectations, the CME Group's FedWatch tool indicates a 71.3% probability of the Federal Reserve implementing an interest rate reduction by the September 17 decision. This sentiment is further supported by movements in Treasury bonds, with the 10-year yield at 4.34% and the two-year bond at 3.79%.
In premarket trading, the SPDR S&P 500 ETF Trust (SPY) and Invesco QQQ Trust ETF (QQQ), which mirror the S&P 500 and Nasdaq 100 indices respectively, both saw increases. SPY advanced by 0.22% to $636.93, while QQQ climbed 0.14% to $564.06, according to Benzinga Pro data. In contrast, the previous session on Thursday saw most S&P 500 sectors conclude in negative territory, with consumer discretionary, utilities, and consumer staples experiencing the most significant losses. However, the energy and materials sectors defied the general market trend, closing higher despite the overall decline in US stocks.
Several companies made headlines with their performance. Walmart Inc. (WMT) shares fell 4.5% on Thursday following its mixed second-quarter results and revised annual outlook. Coty Inc. (COTY) also saw a significant drop of approximately 22% after missing its fourth-quarter adjusted EPS estimates. Conversely, EpicQuest Education Group International Ltd. (EEIQ) surged over 80% in premarket trading on Friday, driven by better-than-expected first-half fiscal results showing robust revenue growth and reduced losses. Azitra Inc. (AZTR) experienced a substantial 40.85% increase after executing a 1-for-6.66 reverse stock split and revealing new institutional ownership through SEC filings. ModivCare Inc. (MODV) gained 16.07% subsequent to its announcement of a Chapter 11 bankruptcy filing coupled with a $100 million investment pledge from secured lenders.
Adding to the corporate news, Aptorum Group Ltd. (APM) shares plummeted 38.35% despite its merger partner receiving New York State Department of Health approval for its APOE Genotyping test, enabling it to offer cognitive decline risk assessment. Star Equity Holdings Inc. (STRR) saw a 27.70% jump after its merger with Hudson Global Inc. (HSON) received stockholder approval. Zoom Communications Inc. (ZM) rose 5.44% after surpassing second-quarter financial expectations and raising its fiscal year 2026 guidance. Intuit Inc. (INTU) surprisingly dropped 5.55% despite reporting strong fourth-quarter earnings and guidance. BJ’s Wholesale Club Holdings Inc. (BJ), Buckle Inc. (BKE), and Gold Fields Ltd. (GFI) are among the companies expected to release their earnings before the market opens, with analysts projecting specific per-share earnings and revenue figures.
As the market digests these various factors, including the latest economic data showing a rise in US initial jobless claims and an increase in existing home sales, alongside shifts in PMI figures, the broader sentiment remains cautious yet hopeful. Analysts anticipate a nuanced speech from Federal Reserve Chair Powell, focusing on the Fed's commitment to inflation control and long-term economic challenges, rather than immediate policy changes. This expectation has led Wells Fargo to suggest portfolio adjustments, emphasizing rebalancing and risk reduction, while maintaining an overweight stance on U.S. Large Cap Equities and a neutral allocation to commodities, anticipating choppier markets ahead due to rising inflation and slowing growth.