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US stocks are anticipated to continue their upward trajectory on Thursday as the Federal Reserve's Jackson Hole Symposium kicks off, alongside the release of unemployment claims and PMI data.
Futures for the tech-heavy Nasdaq are projected to lead the gains, up 0.3%, while S&P 500 futures are showing an increase of 0.2%. Dow futures remain unchanged, and Russell 2000 futures are slightly below flat.
This positive outlook follows a strong performance the previous day, with the S&P 500 climbing 0.4% and approaching July's record high by just 1%.
The recent dovish Fed minutes and a significant downward revision to the annual payrolls figure contributed to a decline in US yields and a weaker dollar.
Deutsche Bank (LSE:0H7D)‘s Henry Allen noted that the minutes from the July FOMC meeting "solidified the prospects of a September cut," with several Fed officials acknowledging that recent progress on inflation and increases in unemployment provided a reasonable case for a 25 basis points reduction at the July meeting.
Although all members supported the decision to keep rates unchanged at that time, a "vast majority" saw a September rate cut as appropriate if subsequent data aligned with expectations.
The dollar index (DXY) is up 0.3% at 101.33, with the greenback rising 0.1% against the euro but falling 0.2% versus the British pound.
Market analyst Josh Mahony from Scope Markets indicated that US markets are likely to maintain their positive momentum today. He pointed out that traders are processing the recent FOMC minutes ahead of Fed Chair Jay Powell’s upcoming appearance at Jackson Hole.
Mahony noted that Powell’s speech at Jackson Hole could serve as a reminder of the anticipated policy pivot.
Today, traders will be focusing on unemployment claims and US PMI data. Mahony suggested that while an increase in weekly initial jobless claims could highlight instability in the job market, the more significant concern may be the services PMI data. A notable decline in this figure could alleviate inflation concerns, given that recent US price increases have largely been driven by the services sector.
