S&P 500 futures held near the flatline on Friday as traders awaited Federal Reserve Chairman Kevin Warsh's Jackson Hole address. The pause follows a Thursday rally in which the index posted its best session since Aug. 4, powered by a jump in technology stocks.
S&P 500 futures traded just below the flatline on Friday, while Nasdaq 100 futures lost 0.3% and Dow Jones Industrial Average futures edged slightly higher. Investors are holding back ahead of Warsh's speech at the central bank's annual symposium in Jackson Hole, Wyoming.
Tech leads a rare rally
Thursday's session saw the S&P 500 advance in its best day since Aug. 4, led by Nvidia's post-earnings rally of nearly 9%. The Nasdaq Composite matched that move.
The information technology sector alone finished the day up 3.4%, while every other S&P 500 sector closed lower — the first time technology carried a broad market gain while every other sector lost ground since March 22, 2001, when the sector rose about 6.5%. Technology is now the second-best-performing S&P 500 sector this year, up 23.7%, trailing only energy's about 37.7% advance.
Warsh speech looms over rate bets
Traders are watching Warsh's address for signals on where he sees interest rates heading next. Fed funds futures are pricing in a roughly 64% likelihood that the central bank holds rates steady at its meeting next month, according to CME's FedWatch tool.
According to Natalia Lojevsky, managing director at CIFC Asset Management: "Investors have very little history with how he talks."
With Thursday's advance behind them, the three major indexes are on track to end the week higher. If the Dow closes positive, it would mark the blue-chip index's first winning week in three.
Source: CNBC
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