HG MARKETS:

U.S. stock index futures edged higher early Friday as investors remained cautious ahead of Federal Reserve Chair Jerome Powell’s upcoming speech at the Jackson Hole Symposium, which is expected to provide further insight into the economic outlook. Dow Jones Futures were up 125 points, or 0.3%, while S&P 500 Futures rose 15 points, or 0.2%. Nasdaq 100 Futures gained 30 points, or 0.1%.

On Thursday, the major indexes ended in the red, with the S&P 500 recording its fifth consecutive day of losses. Heading into the final trading day of the week, all three major averages are on track for weekly declines. The S&P 500 has dropped 1.2% so far, the Nasdaq Composite is down 2.4%, and the Dow Jones Industrial Average is poised for a 0.4% weekly loss.

Federal Reserve Chair Jerome Powell is scheduled to speak later today at the Jackson Hole Symposium, where markets will be looking for fresh signals on the economic outlook and the Fed’s stance on interest rates. His remarks come amid growing skepticism about whether the central bank has sufficient justification to begin cutting rates in September.

Minutes from the Fed’s late-July meeting revealed that policymakers remain cautious about easing monetary policy in the near term, citing ongoing uncertainty over the inflationary effects of former President Donald Trump’s trade tariffs. Additionally, officials appeared more focused on containing inflation than addressing signs of softening in the labor market.

Kansas City Fed President Jeffrey Schmid, a voting member of the FOMC, echoed this sentiment, stating there is no urgency to lower interest rates, given that inflation remains above the 2% target and the labor market continues to show strength.Separately, Cleveland Fed President Beth Hammack, a non-voting member, expressed concern on Thursday that persistent inflation could prevent the Federal Reserve from cutting interest rates in September.

With second-quarter earnings season mostly complete, UBS has raised its S&P 500 targets, citing stronger-than-expected corporate results and improving economic conditions. The bank now sees the index reaching 6,600 by year-end and 6,800 by June 2026, up from its previous forecasts.

The S&P 500 closed Thursday at 6,370. Second-quarter earnings grew 8%, beating UBS’s 5% forecast, while the “Magnificent 7” tech stocks surged 30%, outperforming the expected 20%. The median company exceeded estimates by 4.5 percentage points, above the usual 3.5-point average. UBS also highlighted strong third-quarter guidance, suggesting continued profit growth despite tariff pressures.