NEW YORK (AP) — The U.S. stock market is stuck in a holding pattern in the countdown to a highly anticipated speech by the head of the Federal Reserve. The S&P 500 rose 0.1% in early on Friday trading. The Dow Jones Industrial Average added 140 points, and the Nasdaq composite edged down 0.1%. The bond market was also holding relatively steady with less than a half hour to go before Kevin Warsh will give his first speech as chairman of the Fed at an annual
economic symposium in Jackson Hole, Wyoming. The mountain setting has been the backdrop for major policy announcements by the Fed in the past.
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
U.S. futures are mixed Friday ahead of an address from Federal Reserve Chair Kevin Warsh in Jackson Hole, Wyoming, during the Fed’s annual economic symposium.
Despite pressure to provide guidance on U.S. policy, Warsh has made clear he intends to provide fewer clues about how the Fed intends to control inflation.
Many economists and investors want a clear signal on how Warsh thinks the Fed should handle stubbornly elevated prices that have caused pervasive gloom among many Americans. At his last press conference, he avoided providing direct answers about whether the Fed would hike its benchmark interest rate if inflation remained above the Fed's target.
The futures for the S&P 500 declined slightly on Friday, while that for the Dow Jones Industrial Average was up 0.1%. Nasdaq futures fell 0.3%.
One wild card for inflation has been oil prices, which have been volatile due to uncertainty about the war in Iran. It is still not known when the Strait of Hormuz, through which a fifth of the world's crude passes on a typical day, will re-open to tanker traffic
The price for a barrel of Brent crude, the international standard, rose 0.2% Friday to $88.68. U.S. benchmark crude oil fell 0.1% to $83.46 per barrel.
Brent’s price zigzagged between $72 and $102 last month as hopes rose and fell that the United States and Iran could reach an agreement to end hostilities and the threat to oil tankers in the strait.
In the bond market, Treasury yields ticked higher as markets grow increasingly uneasy about the long-term economic trajectory of the U.S.
In early trading, Gap's stock surged more than 17% before the market opened after it posted strong quarterly earnings late last night and it said that Michael Francis will become CEO of its struggling Old Navy brand later this year. Shares of PayPal slid more than 17% on a report from Bloomberg that Advent and Stripe are dropping plans for a potential buyout of the online payments company.
In Europe, Germany's DAX rose 0.6% to 26,522.87, while the CAC 40 in Paris climbed 1% to 8,401.67. Britain's FTSE 100 climbed 0.2% to 10,81473. Asian markets were mixed.
In other dealings Friday, the U.S. dollar rose to 159.63 Japanese yen from 159.39 yen. The euro dropped to $1.1649 from $1.1652.
