Morning Juice – US Session Prep (25th August)

Sentiment
US equity futures retreated as some of the euphoria around expectations of Federal Reserve interest rate cuts eased, with concerns about tariffs and their impact on inflation and corporate profits back in focus.

Contracts on the S&P 500 edged lower after the gauge jumped the most since May on Friday in the wake of Fed Chair Jerome Powell’s dovish tilt at Jackson Hole. Intel Corp. climbed more than 3% in premarket trading after the US agreed to take a 10% stake in the chip maker.

Traders see an 84% chance of a Fed rate cut next month after Powell signaled that the central bank may ease before inflation fully returns to target amid a softening hiring environment. That optimism faces key tests this week, including a US inflation reading and NVIDIA’s results.

Sentiment had been weak heading into Friday, with the S&P 500 falling for five straight sessions, its longest losing streak since January, as Wall Street pared bets that the Fed was about to reduce borrowing costs. Powell’s comments halted those concerns, sending the equity benchmark soaring more than 1.5% to notch a third straight weekly advance, with last month’s record high in sight. A plunge in short-end Treasury rates sent the US yield curve to its steepest since 2021 on Friday.

Docket
10:00 ET
US New Home Sales for July
Forecast: 0.63M | Prior: 0.627M | Range: 0.662M / 0.615M

11:30 ET
US sells $82 bln 3-Month Bills
US sells $73 bln 6-Month Bills

Speakers
10:00 ET
Trump Signs Executive Orders

12:00 ET
Trump greets the President of the Republic of Korea

15:15 ET
Fed’s Logan gives remarks and speaks on a panel at the Bank of Mexico Centennial Conference.
Text and Q&A are expected.

Good luck!