S&P 500: Nvidia Slips on China Worry While Traders Await Powell’s Rate Signal

Stock Futures Edge Up Ahead of Powell Speech as Nvidia, Intuit Lead Early Movers

U.S. stock futures saw modest gains Friday morning as traders braced for Federal Reserve Chair Jerome Powell’s highly anticipated remarks at the Jackson Hole symposium. Dow futures rose 131 points, or 0.3%, while S&P 500 and Nasdaq 100 futures added 0.2% and 0.1%, respectively. With major indexes on track for a losing week, Powell’s comments could steer sentiment in a market facing rising rate cut expectations.

Will Powell Signal a September Rate Cut?

Markets are currently pricing in a 75% chance of a quarter-point rate cut at the Fed’s September meeting, based on CME FedWatch data. Powell’s speech—scheduled for 14:00 GMT—is expected to offer clarity on the path forward for monetary policy.

Wall Street strategists anticipate Powell may support a rate cut, but without making a definitive commitment. His remarks could focus on maintaining Fed independence and adjusting the central bank’s long-term inflation framework.

Traders should closely watch his tone on inflation persistence and labor market conditions, which have remained mixed following recent data revisions.

Nvidia Dips After Chip News and China Uncertainty

Nvidia shares fell 1.3% in premarket trading Friday and are down 3% for the week. The sell-off follows reports that Nvidia asked suppliers to halt production of its H20 GPUs and is in discussions with the U.S. government regarding the approval of a new AI chip for the Chinese market.

CEO Jensen Huang confirmed talks with officials but noted it’s “too soon to know” if the B30A chip—designed as a follow-up to the H20—will be cleared for export. Investors remain wary as geopolitical tensions and export restrictions continue to weigh on the stock.

Earnings Moves: Intuit, Workday Drop on Guidance; Zoom, RLX Gain

Intuit declined over 6% premarket despite beating Q4 earnings estimates with adjusted EPS of $2.75 on $3.83 billion in revenue. The concern came from its Q1 revenue guidance, forecasting 14% to 15% growth versus the 15.9% expected.

Workday slipped 4% after issuing Q3 subscription revenue guidance in line with forecasts but warned of challenges in its government and education segments.

Conversely, Zoom rose over 4% after topping estimates with $1.53 EPS and $1.22 billion in revenue.

RLX Technology gained more than 8% after Q2 revenue jumped 40.3% year over year, beating expectations.

Market Outlook Hinges on Powell and Fed Strategy

With the S&P 500 down 1.2% this week and the Nasdaq off 2.4%, Powell’s Jackson Hole address will be crucial for short-term sentiment.

Traders should monitor not just rate cut hints but also any Fed language changes on inflation strategy and employment. If Powell stops short of endorsing a September cut, equities may face renewed pressure, particularly in tech-heavy sectors.

The Equal Weight S&P 500 index, flat for the week, underscores investor hesitation and potential for sector rotation should Powell’s message surprise markets.

More Information in our Economic Calendar.