Wall Street: Futures firm as Powell set to take center stage at Jackson Hole

Wall Street news: US stock index futures edged higher on Friday with investors awaiting Federal Reserve Chair Jerome Powell's comments at the Jackson Hole Economic Symposium for clues on interest-rate cuts in the world's biggest economy.

While minutes from the Fed's July meeting this week showed a number of policymakers were ready to consider rate cuts come September, Powell's speechcould offer insights on the pace of easing and how the central bank will respond as the economy evolves.

Powell is scheduled to speak at 10 a.m. ET (1400 GMT) at the annual global gathering of central bank officials at Jackson Hole, Wyoming.

"The question is whether he will go as far as opening the door to a 50 bps move – if not in September, at a later point this year," said ING strategist Francesco Pesole.

Traders have fully priced in a scenario where the Fed begins easing interest rates at its Sept. 17-18 meeting, with a 74 per cent chance of a 25-basis-point rate cut, according to CME Group's FedWatch tool.

Recent data including weekly jobless claims and payrolls revisions signaled the US economy was slowing, albeit gradually, assuaging fears over a sharp downturn.

That has helped Wall Street's three main indexes recover from a plunge earlier this month triggered by a dour July employment report and yen carry trade. The S&P 500 .SPX is now about 1.8 per cent away from a record high touched in mid-July, after falling as much as 9.7 per cent from that level.

At 05:07 a.m. ET, Dow E-minis 1YMcv1 were up 109 points, or 0.27 per cent, while S&P 500 E-minis were up 0.4 per cent to 5,616.25. The Nasdaq 100 E-minis NQcv1 were up 126 points, or 0.64 per cent.

Workday WDAY.O shares jumped 11 per cent in premarket trading after the human resource software provider beat market expectations for second-quarter revenue and announced a $1 billion stock buyback plan.

Ross Stores ROST.O shares gained 5.7 per cent after the discount retailer raised its fiscal 2024 profit forecast.

Later in the day, data from the US Commerce Department's Census Bureau is expected to show new home sales steadied in July after hitting a seven-month low in June.