Following a Five-day Slide, Stocks Edge Higher as Powell Takes Center Stage

US equities opened higher on Friday after a five-day losing streak, as investors awaited Federal Reserve Chair Jerome Powell’s closely watched remarks expected to shape the near-term outlook for interest rates.

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The S&P 500 started the session up 0.3%, supported by gains in healthcare and real estate sectors. Among the top performers was Ross Stores Inc., which rallied after reporting stronger-than-expected earnings despite headwinds from tariffs.

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Meanwhile, the tech-focused Nasdaq 100 added 0.1%, and the blue-chip Dow Jones Industrial Average climbed 0.6%, putting it on track for its first record close since December.

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Over the past week, the S&P 500 has seen a noticeable rotation out of high-flying tech momentum stocks into more defensive sectors, as traders look for stability in an uncertain macro environment.

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“I’m not forecasting a full-blown bear market, but I do expect a 6% to 7% pullback within the context of a longer-term uptrend,” wrote John Kolovos, Chief Technical Strategist at Macro Risk Advisors, in a note to clients Friday.

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Investor attention is squarely on Powell’s speech at the Federal Reserve’s annual Jackson Hole symposium in Wyoming. Markets are hoping for clues on how quickly policymakers could shift toward easing monetary policy, especially with signs emerging that the labor market is losing steam.

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The complication? Inflation remains stubbornly above the Fed’s 2% target, keeping the outlook uncertain. Powell is scheduled to speak at 10 a.m. New York time.

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Earlier this month, markets were nearly certain of a 25 basis-point rate cut in September. However, expectations have softened, and traders now see October as a more likely window for the next policy adjustment.

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“What matters most in Powell’s remarks today is his level of confidence that inflation is on a sustainable path toward the Fed’s 2% goal,” said Torsten Slok, Chief Economist at Apollo Management.

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