US stock markets remained largely subdued on Friday as investors awaited Federal Reserve Chair Kevin Warsh’s closely watched speech at the Jackson Hole economic symposium, looking for clues about the central bank’s future monetary policy.
Investors were particularly focused on whether Warsh would provide greater clarity on the outlook for interest rates and inflation. His communication has attracted criticism during his tenure, with some investors viewing his comments at press conferences as unclear or sending mixed signals on inflation and other economic issues.
At the open, the Dow Jones Industrial Average rose 42.5 points, or 0.08%, to 53,611.94. The S&P 500 rose 4.2 points, or 0.05%, to 7,735.17, while the Nasdaq Composite dropped 25.4 points, or 0.10%, to 26,515.989.
Investors await clues on Fed policy
The Jackson Hole gathering has been an important event for global financial markets since 1982, bringing together policymakers, economists and other prominent figures to discuss major economic issues.
The event “has traditionally been the venue at which the Chair prepares financial markets with some forward guidance for the path of monetary policy in the period ahead,” said Angus Campbell of Nominis.
“The current Fed Chair’s explicit aversion to forward guidance leaves a far less certain outcome,” he added.
Ahead of Warsh’s remarks, the bond market remained relatively stable. The yield on the benchmark 10-year US Treasury note edged up to 4.68%, compared with 4.67% at Thursday’s close.
Key Stock Movers
Markets were also digesting a mixed batch of corporate earnings, with individual stocks witnessing sharp moves.
Gap shares surged nearly 20% after the retailer reported quarterly profit that exceeded Wall Street expectations.
Marvell Technology shares, meanwhile, fell 7.9% despite the chipmaker reporting quarterly revenue and profit that slightly surpassed analysts’ expectations.
