U.S. stock futures slipped slightly on Friday as investors remained cautious ahead of Federal Reserve Chair Jerome Powell’s highly anticipated speech at the Jackson Hole symposium. Meanwhile, reports suggest Nvidia may halt production of a key China-focused chip, and Meta has signed a multibillion-dollar deal with Google.
Powell’s Speech in Focus
Jerome Powell will deliver remarks at the Federal Reserve’s annual Jackson Hole conference later today. Investors are eager for signals on whether the Fed will cut interest rates in September.
At the start of August, expectations for a rate cut were nearly certain following weaker payroll data. However, these odds have since dropped sharply, with traders now pricing a 71.5% chance of a 25-basis-point cut, compared with 99% just last week, according to Investing.com’s Fed Rate Monitor Tool.
The shift came after hotter U.S. producer inflation data and hawkish statements from Fed officials. Kansas City Fed President Jeffrey Schmid said the central bank is in no rush to ease, pointing to sticky inflation and a resilient labor market. Similarly, Cleveland Fed President Beth Hammack warned that persistent price pressures may block a September rate cut.
Markets are also watching for Powell’s comments on stagflation risks and the independence of the Fed, especially after fresh criticism from President Donald Trump directed at Fed Governor Lisa Cook earlier this week.
U.S. Futures Lower Ahead of Powell
At 03:00 ET, S&P 500 futures were down 0.1%, Nasdaq 100 futures slipped 0.3%, and Dow futures fell 0.1%. The S&P 500 has now logged five consecutive daily losses, while all major indices are on track for a losing week.
Nvidia Faces Chip Roadblocks in China
According to reports, Nvidia (NASDAQ:NVDA) has asked suppliers, including Foxconn, Samsung Electronics, and Amkor Technology, to pause production of its H20 AI chip, which is the most advanced processor it can sell to China under U.S. restrictions.
The decision comes after China’s Cyberspace Administration requested information about the chip, raising concerns over potential tracking technology. Nvidia only resumed sales of the H20 in July after a temporary U.S. export halt earlier this year.
Meta Signs $10 Billion Deal with Google
Meta Platforms (NASDAQ:META) has entered a $10 billion agreement with Google Cloud (NASDAQ:GOOGL) for servers, storage, and AI infrastructure over six years, according to The Information.
The deal highlights Meta’s ambition to accelerate artificial intelligence development while managing the heavy costs of data centers. Last month, Meta raised its annual capital expenditure forecast to as high as $72 billion and disclosed plans to sell $2 billion worth of data center assets.
Oil Prices Edge Higher
Crude oil prices ticked up Friday, putting both Brent and WTI on track to snap a two-week losing streak. At 03:00 ET, Brent rose 0.1% to $67.68 per barrel, while WTI climbed 0.1% to $63.59.
Prices were supported by stalled Russia-Ukraine peace talks and a larger-than-expected drawdown in U.S. crude stockpiles, signaling robust demand.
