U.S. stock futures showed little movement Thursday as investors prepared for the start of the Federal Reserve’s Jackson Hole symposium and awaited new labor market data. Attention also turned to Walmart, which released its latest quarterly earnings—a key indicator of U.S. consumer health.
Jackson Hole Symposium Under the Spotlight
The Fed’s annual Jackson Hole gathering begins later Thursday in Wyoming, bringing together central bankers from around the world to discuss monetary policy.
The focus will be on Federal Reserve Chair Jerome Powell’s speech on Friday—his final address at the symposium as Fed chief. Investors are hoping for guidance on a potential September rate cut after early-month payroll figures came in weaker than expected.
“Powell’s reaction function to recent stagflationary data will be key,” said analysts at Bank of America, in a note. “Will he be spooked by jobs revisions or lean into the labor supply slowdown?”
Market odds for a 25-basis-point rate reduction on September 17 stand at 80%, slightly down from 84% the previous day. Powell’s comments may also influence how his tenure is remembered, particularly amid criticism from former President Donald Trump over the Fed’s decision not to cut rates this year. Trump’s growing sway over monetary policy has recently sparked market concerns.
Futures Stable Ahead of Jobs Data
Ahead of key labor market releases and the symposium, U.S. stock futures traded in narrow ranges. By 03:00 ET, S&P 500 futures were down 1 point (0.1%), Nasdaq 100 futures gained 12 points (0.1%), and Dow futures rose 50 points (0.1%).
Wednesday saw mixed results in the main indices: the Dow edged higher, while the S&P 500 and Nasdaq Composite ended lower, extending a four-day losing streak for the S&P as technology stocks weighed on performance.
Minutes from the Fed’s last policy meeting showed most officials remain focused on inflation and labor market conditions. “Almost all participants viewed it as appropriate to maintain the target range for the federal funds rate at 4.25% to 4.50% at this meeting,” the July 29–30 minutes stated.
Investors also anticipate weekly jobless claims, July existing home sales, and the Philadelphia Fed’s business index, all of which could influence market sentiment ahead of Jackson Hole.
Walmart Reports Q2 Earnings
Walmart (NYSE:WMT), the world’s largest retailer by revenue, released its second-quarter results Thursday morning, offering insight into U.S. consumer spending. Analysts project earnings of 74 cents per share, up nearly 11% year-on-year, and revenue of $176.16 billion, a 4% increase.
While Walmart slightly missed expectations in the prior quarter, July retail sales supported optimism about ongoing consumer demand. The retailer’s low-price strategy and grocery dominance provide a buffer against economic challenges. LSEG data shows Walmart has beaten earnings estimates for 11 straight quarters, outperforming peers in consumer staples.
Still, Walmart management may adopt a cautious tone, considering a cooling labor market, inflation pressures, and potential impacts of Trump administration tariffs.
This week has seen several major retailers report results, with Home Depot (NYSE:HD) kicking off earnings on Tuesday and Target (NYSE:TGT) declining Wednesday after naming Michael Fiddelke as CEO while keeping previously lowered annual guidance.
Meta Pauses AI Hiring
Meta Platforms (NASDAQ:META) confirmed late Thursday a Wall Street Journal report that it is pausing hiring for its AI division. This move temporarily halts the company’s massive recruitment and spending spree on AI researchers and engineers.
A spokesperson said the pause was simply “some basic organizational planning: creating a solid structure for our new superintelligence efforts after bringing people on board and undertaking yearly budgeting and planning exercises.”
Meta is part of Wall Street’s so-called AI Hyperscalers—tech giants investing heavily in AI models and data center capacity, with Meta allocating up to $72 billion for AI in 2025. Concerns are growing among investors that high costs and stock-based compensation could hurt returns. An MIT report earlier this week found 95% of AI ventures remain unprofitable, raising further doubts about AI spending.
U.S. Crude Prices Rise on Strong Demand
Oil prices climbed Thursday, continuing recent gains on signs of robust U.S. demand. By 03:00 ET, Brent futures increased 0.3% to $67.30 a barrel, and West Texas Intermediate gained 0.8% to $63.22 a barrel, following over 1% gains in the prior session.
U.S. crude inventories fell by 6 million barrels last week, and gasoline stocks dropped by 2.7 million barrels, according to the Energy Information Administration, signaling strong summer driving demand.
Markets are also monitoring the search for a Ukraine peace deal, with expectations that any resolution could pressure oil prices lower. However, ongoing delays in the peace process and continued Western sanctions on Russian oil, along with the threat of additional tariffs, continue to support crude prices.
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