U.S. stock index futures traded in narrow ranges on Friday as Wall Street paused following an Nvidia-fueled rally. Investors were also preparing for Federal Reserve Chair Kevin Warsh’s inaugural keynote address at the Jackson Hole symposium.
S&P 500 futures were flat at 7,728 points, while Nasdaq 100 futures slipped 0.3% to 29,606.75 points. Dow Jones Industrial Average futures edged up 0.1% to 53,682.0 points. The subdued moves followed a strong Thursday session in which mega-cap technology shares rallied on Nvidia’s bullish revenue outlook.
Summary
U.S. equity futures were little changed as investors paused after a strong Nvidia-led technology rally. Nvidia shares eased 1% in premarket trading after surging 8.7% on Thursday, while the company’s upbeat outlook helped ease concerns that AI infrastructure spending may be slowing.
Attention has now shifted toward Federal Reserve Chair Kevin Warsh’s first Jackson Hole keynote address. Investors are looking for signals on inflation tolerance and the future path of interest rates after headline PCE inflation accelerated to 3.7% year-on-year.
Elevated Treasury yields and renewed geopolitical concerns surrounding Iran are also limiting risk appetite. Crude oil prices rose on Thursday as markets assessed the possibility of further pressure on global energy supplies.
Nvidia sparks AI surge and eases demand fears
Thursday’s cash session was dominated by a sharp relief rally across artificial intelligence-linked equities after Nvidia delivered a strong earnings report and forward revenue forecast. Nvidia shares were down around 1% ahead of Friday’s session after jumping 8.7% on Thursday, marking the stock’s first positive post-earnings reaction in several quarters.
The chipmaker’s optimistic long-term outlook helped ease growing concerns that capital expenditure on AI infrastructure by major technology hyperscalers was beginning to decelerate. That reassurance extended beyond Nvidia itself, reinforcing the broader investment case for companies exposed to AI computing, data centers and semiconductor demand.
The broader indexes followed semiconductor stocks higher. The S&P 500 gained 0.7%, while the technology-heavy Nasdaq Composite jumped 1.6% and the Dow Jones Industrial Average rose 0.2%.
Gains also spread beyond chipmakers into enterprise software and cybersecurity. Salesforce and CrowdStrike were among the companies posting strong advances following Nvidia’s results.
All eyes turn to Warsh’s Jackson Hole address
With Nvidia’s earnings now behind the market, investors have shifted their attention toward the Federal Reserve’s annual Economic Policy Symposium in Jackson Hole, Wyoming. Chair Kevin Warsh is scheduled to deliver his first keynote address as Fed chief later on Friday, making the speech a potentially important catalyst for global markets.
Trading desks are looking for clearer signals about the central bank’s inflation tolerance and future interest-rate path. July’s core Personal Consumption Expenditures price index matched expectations, but headline PCE inflation accelerated slightly to 3.7% year-on-year, reinforcing concerns that price pressures remain persistent.
Elevated U.S. Treasury yields have continued to weigh on equity valuations. Long-term borrowing costs remain relatively sticky as markets absorb heavy government debt issuance, which is particularly relevant for highly valued growth and technology companies.
Oil and geopolitical risks add another layer of caution
Geopolitical developments are adding another source of uncertainty. Crude oil prices rose on Thursday following reports that U.S. President Donald Trump is not interested in returning to previous memorandum-of-understanding terms with Iran.
The development has renewed concerns about potential pressure on energy supplies. Higher oil prices could also complicate the Federal Reserve’s inflation outlook if sustained increases eventually feed through into transportation, production and consumer costs. The source article therefore leaves markets balancing three major forces: strong AI-sector earnings, restrictive financial conditions and renewed geopolitical risk.
What investors should watch next
Warsh’s Jackson Hole speech is likely to be the market’s immediate focus. Investors will be watching for any indication that persistent inflation could keep monetary policy restrictive for longer, particularly while Treasury yields remain elevated.
At the same time, Nvidia’s strong outlook has provided fresh support for the AI investment cycle. If hyperscaler spending remains resilient, semiconductor and technology stocks could continue to benefit, although high valuations leave the sector particularly sensitive to changes in interest-rate expectations.
The next market move may therefore depend on whether the Fed reinforces or challenges the optimism generated by Nvidia. A more hawkish message could revive pressure on growth stocks, while a softer policy signal may give the technology-led rally additional room to extend.
