Futures Slip as Warsh’s Hawkish Tone and Tech Earnings Weigh on Markets

Key points

• S&P 500 and Dow futures fell 0.2%, while Nasdaq 100 futures dropped 0.1% on Sunday.
• Fed Chair Kevin Warsh’s Jackson Hole speech raised the probability of a September rate hike to 57%.
• Brent crude rose 2.5% to $90 a barrel after a U.S. strike in the Strait of Hormuz.
• August nonfarm payrolls are expected to rise by 58,000, up from a 23,000 decline in July.
• Broadcom, Dell, and Hewlett Packard Enterprise are scheduled to report earnings this week.

Background

Markets had recently shown resilience, with tech stocks leading gains in early August. However, recent volatility increased as investors weighed inflation data and upcoming central bank communications.

How outlets are covering it

Barron’s highlights the immediate impact of Warsh’s speech on rate expectations and the geopolitical drivers behind rising oil prices. Moomoo emphasizes the broader market sell-off triggered by poor earnings from Marvell and Iren, noting that these results dragged down other tech names like NVIDIA and IonQ.

Why it matters

The combination of hawkish Fed signals and rising energy costs creates a challenging environment for equities, particularly for interest-rate-sensitive technology sectors.

What to watch

Investors will monitor the August jobs report on Friday and earnings from major tech firms later this week to gauge economic resilience.