US stock futures were mixed on Friday as investors locked in profits following Nvidia's strong post-earnings rally and turned their attention to Federal Reserve Chair Kevin Warsh's first Jackson Hole keynote speech.
Dow futures edged about 0.1% higher, S&P 500 futures hovered near flat, and Nasdaq 100 futures slipped roughly 0.3%. The 10-year Treasury yield held near 4.68%, with markets pricing about a one-in-three chance of a September rate increase.
Warsh's communication test
Warsh is scheduled to speak at 10 am ET at the Jackson Hole Economic Policy Symposium. Investors are looking for more than broad comments on inflation; they want clarity on what would trigger another rate hike. Swissquote strategist Ipek Ozkardeskaya noted that markets increasingly expect a more definitive policy message. His challenge is to reinforce the Fed's inflation credibility without destabilizing a bond market that has already seen weeks of volatility.
Nvidia's rally cools
Nvidia slipped about 1% pre-market after surging 8.7% on Thursday following its blockbuster forecast. The pullback extended to other chip names, with Micron and Intel falling more than 2%. This appears to be profit-taking rather than a rejection of Nvidia's outlook, but it underscores how much AI optimism is now built into semiconductor valuations.
Marvell's AI bar
Marvell fell roughly 8% despite beating quarterly expectations and raising its long-term revenue targets. The issue was timing: investors had expected its expanded Google custom-chip relationship to contribute more sooner, but management indicated the meaningful impact comes in fiscal 2029 and beyond. Morgan Stanley analysts see much of the Google opportunity through fiscal 2028 as already reflected in guidance, explaining why another "beat and raise" wasn't enough.
PayPal and Gap diverge
PayPal sank about 14% after a reported $53 billion takeover pursuit by Stripe and Advent International was abandoned, removing a takeover premium that had supported the stock. Gap jumped 13%-15% after raising its annual earnings forecast and naming Michael Francis as Old Navy's next CEO. Adjusted quarterly earnings beat expectations even as revenue slipped 2%.
Consumer sentiment data
The final August University of Michigan consumer-sentiment reading is due at 10 am ET, alongside Warsh's speech, while Chicago PMI arrives at 9:45 am. Markets expect the Michigan index to remain near a weak preliminary reading of 51. The figures are unlikely to overshadow Jackson Hole, but another weak consumer reading could strengthen the case for patience even as inflation remains above target.
For more on the market's reaction to Nvidia and Jackson Hole, see chip stocks sliding premarket. Also, check gold's steady move near $4,627 and USD/JPY wavering as the speech approaches.
This article is for informational purposes only and does not constitute financial advice.
