Nasdaq Futures Sink While S&P 500, Dow Futures Gain Ahead Of Fed Chief Warsh’s Jackson Hole Speech: PYPL, MRVL, IREN, AFRM Stocks In Focus

• Fed watchers at JPMorgan, Apollo and Morgan Stanley believe Warsh could reassure markets that controlling inflation remains a key priority for the Federal Reserve during his much-awaited speech.
• Meanwhile, prediction markets see little chance of guidance on the Fed’s September decision or the Treasury’s recent bond-market intervention. 
• The past week was dominated by major earnings releases, with Nvidia’s results topping the charts on Wednesday, alongside results from other notable companies. 

U.S. stock futures traded mixed in the overnight session late Thursday after strong quarterly earnings from multiple technology companies, as investors now eye key economic cues from Federal Reserve Chair Kevin Warsh. 

Warsh is scheduled to speak on Friday at the Fed’s annual symposium in Jackson Hole, Wyoming, where he is likely to elaborate on plans related to stabilizing long-term Treasury yields.

Nasdaq-100 futures fell 0.05%, while Dow futures and S&P 500 gained 0.15% and 0.01%, respectively, at 11:37 PM EDT.  

On Thursday, all three benchmark indexes closed higher following strong earnings print. The Nasdaq Composite led the climb, adding more than 400 points to end 1.57% higher. The Dow Jones Industrial Average and the S&P 500 rose 0.20% and 0.72%, respectively.

All three indexes are poised to end the week higher. 

Key US Market Drivers

The past week was dominated by major earnings releases, with Nvidia’s results topping the charts on Wednesday. The stock closed up nearly 9% on Thursday, extending gains after its quarterly print. 

The AI darling posted strong second-quarter (Q2) results, reporting revenue of $96.2 billion, more than double the prior-year period. Earnings per share came in at $2.22 per share. Both prints beat Wall Street expectations. 

Meanwhile, Salesforce Inc. (CRM) also posted its Q2 results, surging more than 22% at close after beating expectations. Results from Marvell Technologies Inc. (MRVL), Iren Ltd. (IREN), Workday Inc. (WDAY), Best Buy Co. (BBY), and Affirm Holdings (AFRM) dropped on Thursday. 

MRVL stock slumped nearly 8% overnight after it posted a slim second-quarter beat and guided toward a decline in third-quarter gross margins, even as it raised its multi-year sales outlook.

IREN and BBY stocks also declined following their results, while WDAY and AFRM stocks gained at the close. 

Fed watchers at JPMorgan, Apollo and Morgan Stanley believe Warsh could reassure markets that controlling inflation remains a key priority for the Federal Reserve during his much-awaited speech, as per a Bloomberg report. 

If he succeeds, it could ease concerns over the Fed’s credibility, according to JPMorgan’s Priya Misra. Warsh’s Jackson Hole speech is now widely considered an important early test for the new chair, whose cautious and sometimes unclear communication has left investors questioning the Fed’s commitment to keeping inflation under control.

Meanwhile, prediction-market traders see little chance of guidance on the Fed’s September decision or the Treasury’s recent bond-market intervention at his Jackson Hole speech, according to a report from CNBC. 

Kalshi bettors are assigning just 16% odds to a mention of “bond market” and 8% to “yield curve.” Instead, they are voting for an 89% chance of discussing inflation. 

“Investors have very little history with how he talks,” Natalia Lojevsky, managing director at CIFC Asset Management, reportedly told CNBC. “New chairs use this stage to set the frame for their tenure, and whatever language he establishes Friday gets applied to every data print for the next year.”

Trending Stocks To Watch 

PayPal Holdings Inc. (PYPL): The fintech firm is dominating the conversation on Stocktwits amid reports indicating that Stripe and Advent have backed off from their acquisition proposal for the company. PYPL shares tanked more than 12% overnight. 

IREN Ltd. (IREN): Shares of the bitcoin miner and AI infrastructure company fell nearly 9% overnight after its fiscal Q4 revenue of $137.2 million and adjusted loss of $0.41 per share missed Wall Street expectations. 

Marvell Technology Inc. (MRVL): The stock fell nearly 9% after-hours as investors focused on softer near-term gross margins and only a marginal Q2 earnings beat, despite strong revenue growth and higher full-year targets.

Affirm Holdings Inc. (AFRM): The buy now, pay later firm’s shares soared more than 11% overnight after it posted Q4 revenue of $1.17 billion and gross merchandise volume of $14.1 billion, both above Wall Street expectations, while annual GMV rose 37% to $50.2 billion. The company also raised its guidance for the upcoming quarter. 

Other Market Trends 

Among ETFs tracking benchmark indexes, the SPDR S&P 500 ETF (SPY), and the SPDR Dow Jones Industrial Average ETF Trust (DIA) were trading in the green at the time of writing, while the Invesco QQQ Trust (QQQ) was down. 

The U.S. 30-year Treasury yield was trading at 5.206% at the time of writing, while the U.S. 10-year Treasury yield climbed to 4.684%. 

The iShares 20+ Year Treasury Bond ETF (TLT) was down 0.16% amid ‘bullish’ sentiment.

Meanwhile, oil prices declined on Tuesday. Brent crude futures expiring in October were down about 0.48%, trading at $89.27 a barrel at the time of writing. Meanwhile, WTI crude futures expiring in October were trading at $83.18 per barrel.

Asian markets were trading mixed at the open on Friday. South Korea's KOSPI declined at the time of writing, while China’s SSE Composite, Japan’s Nikkei 225 and Australian stocks were all climbing higher. 

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