Here are five important things investors should know to start the trading day:
1. Change in Trend
Stock futures went up on Friday, bouncing back after a drop. The Dow Jones Industrial Average fell by 0.4% on Thursday, the S&P 500 dropped by 0.9%, and the Nasdaq Composite lost 1.7%, its biggest drop since August 5.
The Dow and S&P have small gains for the week, but the Nasdaq is slightly down as Friday trading begins.
2. Powell’s Speech
Federal Reserve Chair Jerome Powell will speak at 10 a.m. ET on Friday from the Fed’s annual meeting of central bankers in Jackson Hole, Wyoming.
With a possible interest rate cut in September, Wall Street will be looking for broader policy updates. In past speeches at this event, Powell has discussed traditional unemployment levels and introduced more flexible inflation targets.
3. Home Sales
Home sales increased in July for the first time in five months. Sales of previously owned homes were up by 1.3% from June, showing early signs of recovery in the housing market.
Lawrence Yun, chief economist for the National Association of Realtors, noted that while sales have improved month-over-month, they are still “slow.” He added that buyers are seeing more options and better affordability due to lower interest rates.
4. New Boost
New Covid vaccines are coming soon. On Thursday, the Food and Drug Administration approved updated vaccines from Pfizer and Moderna that target current virus strains causing a summer rise in cases.
Dr. Peter Marks, director of the FDA’s Center for Biologics Evaluation and Research, urged eligible people to consider getting the updated vaccine due to reduced immunity from past infections and previous shots. The new vaccines might be available in the next few days.
5. Robo Rideshare
Your Uber ride might soon be without a driver. Uber and General Motors’ Cruise autonomous driving unit have announced a multi-year partnership to offer driverless rides through Uber’s platform starting next year.
While details about the launch and agreement terms haven’t been shared, Cruise CEO Marc Whitten said this partnership will start a “new era of urban mobility.” Cruise is working to relaunch its robotaxi service after a recent incident where one of its vehicles dragged a pedestrian, leading to a temporary halt in operations. While Rideshare startups raise $250 million from Uber and others.
Summary
Investors should watch for the market’s recovery, Jerome Powell’s speech, the rise in home sales, new Covid vaccines, and the launch of driverless Uber rides. These points are important for making informed decisions as the trading day unfolds.
