Futures steady after S&P extends winning run; Fed cues awaited
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Futures up: Dow 0.01%, S&P 500 0.07%, Nasdaq 0.13%
Aug 20 (Reuters) -U.S. stock index futures inched higher in range-bound trading on Tuesday as bets of a September interest rate cut solidified ahead of Federal Reserve Chair Jerome Powell's speech at Jackson Hole later this week.
The S&P 500 .SPX and the Nasdaq .IXIC extended gains to an eighth straight session on Monday, their longest winning streak so far this year.
Recent data has shown a still-healthy consumer despite softening of economic conditions, boosting expectations that the Fed will start easing its monetary policy when it meets in September.
Traders currently see a 75.5% chance of the Fed cutting interest rates by 25 basis points (bps) in September, compared to a near even split between a 50 and 25 bps cut seen a week ago, according to the CME FedWatch Tool.
As per a slim majority of economists polled by Reuters, the U.S. central bank will cut interest rates by 25 bps at each of the remaining three meetings of 2024, one more reduction than predicted last month.
Achilleas Georgolopoulos, an investment analyst at forex broker XM, however, sounded a note of caution.
"(The) forecasts are relatively aggressive considering the state of the U.S. economy and potentially reveal analysts' expectations that Chairman Powell will be relatively dovish at the Jackson Hole Symposium," Georgolopoulos said.
"This is probably the main market scenario currently priced in, which increases the possibility of an acute market reaction if Powell repeats his balanced view and fails to appear dovish."
Chair Powell will deliver a speech at the economic symposium in Jackson Hole on Friday, which will be parsed for any signs of acknowledgement of a rate cut in September.
Atlanta Fed chief Raphael Bostic and Fed Vice Chair for Supervision Michael Barr will speak later on Tuesday. Minutes from the Fed's last policy meeting are due on Wednesday.
At 05:15 a.m. ET, Dow E-minis 1YMcv1 were up 3 points, or 0.01%, S&P 500 E-minis EScv1 were up 3.75 points, or 0.07% and Nasdaq 100 E-minis NQcv1 were up 25.75 points, or 0.13%.
Among individual stocks, Palo Alto Networks PANW.O gained 2.1% in premarket trading after the company forecast fiscal 2025 revenue and profit above estimates, a sign of growing demand for its cybersecurity products as the digital threat landscape evolves.
Cryptocurrency and blockchain-related stocks firmed as bitcoin BTC= rose 3.1%. Exchange operator Coinbase Global COIN.O gained 2.1% and miner Riot Platforms RIOT.O was up 2.7%.
Bitcoin buyer MicroStrategy MSTR.O added 3% and ProShares Bitcoin Strategy ETF BITO.P advanced 3.4%.
U.S. stocks back up to levels seen before early August selloff https://tmsnrt.rs/4dT7Pkx
Reporting by Shashwat Chauhan in Bengaluru; Editing by Saumyadeb Chakrabarty
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