S&P 500 Futures Flat as Fed Cut Bets Ease

S&P 500 futures held steady as traders pulled back slightly on bets for a September Fed rate cut, with probabilities slipping to 75.3% after July meeting minutes. The euro dipped 0.2% to $1.1589 while the dollar gained against the yen, following stronger-than-expected Japanese inflation data. Brent crude eased 0.2% to $67.54 after Thursday’s rally, as geopolitical tensions offset signs of firm US oil demand.

Equities

The FTSE 100 closed 0.2% higher on Thursday, marking a record close for the third day in a row. Gains came as healthcare stocks added 0.4%, aerospace and defence shares rose 1.6%, and energy shares lifted 0.4% after oil prices firmed. Mining stocks also supported the market, with industrial miners up 0.8% and precious metals miners rising 1.9%. The FTSE 250 slipped 0.3% on the same day. Fresh data showed UK businesses reported their strongest month of activity in a year, led by a recovery in services.

WH Smith plunged 42.3% on Thursday after the retailer cut its annual profit outlook, leaving the stock on track for its worst single-day fall on record. Other UK-listed names including InterContinental Hotels Group, Schroders, Entain and Mondi all slipped more than 1% as they traded ex-dividend.

In the United States, Wall Street closed lower on Thursday as traders awaited comments from Federal Reserve Chair Jerome Powell at Jackson Hole. The Dow Jones fell 0.34% to 44,785.50, the S&P 500 declined 0.40% to 6,370.17, and the Nasdaq Composite dropped 0.34% to 21,100.31. Nine of the 11 S&P sectors finished in the red.

Walmart fell 4.5% after reporting higher annual sales and profit guidance, underpinned by demand across income levels, but the retailer missed its quarterly profit estimates and pointed to higher tariff-related costs. Coty was the weakest large-cap stock of the day, plunging 21.4% after warning that current-quarter sales would be hit by weaker US consumer spending. Technology shares also remained under pressure after earlier losses this week, with Nvidia, Meta, Amazon and AMD all closing weaker on Thursday.

Forex & Commodities

The US dollar firmed early on Friday, with the dollar index reaching 98.75 and heading for a weekly gain as investors pared back expectations for aggressive Federal Reserve easing ahead of Jerome Powell’s address at Jackson Hole. The euro slipped to $1.1583, its lowest level since early August, and was down over the week, while sterling held steady at $1.3402 but remained weaker compared with last Friday. The yen traded at 148.63 per dollar and was on course for a weekly decline as inflation in Japan stayed above the Bank of Japan’s 2% target, reinforcing expectations for a policy rate rise later this year. The Australian dollar hovered at $0.6425, while the New Zealand dollar edged down to $0.5814, on track for its sharpest weekly fall in over four months.

Gold prices moved lower on Friday morning, with spot gold trading at $3,329 per ounce as a stronger dollar weighed on demand. Silver also slipped to $38.01 per ounce, while platinum fell to $1,345 and palladium inched up to $1,113. The pressure on precious metals followed US labour data showing that jobless claims rose last week to their highest in nearly three months, underscoring signs of a softer jobs market even as inflation risks linger.

Oil prices edged higher on Friday morning, with Brent crude at $67.79 per barrel and West Texas Intermediate at $63.65, both contracts set to close the week stronger. Gains followed a larger-than-expected drawdown in US crude inventories, with stockpiles falling by 6 million barrels in the week to 15 August. Hopes of a swift peace deal between Russia and Ukraine receded, with reports of fresh air strikes and demands from Moscow for territorial concessions, lifting the geopolitical risk premium on crude.