Futures edge lower as Powell's rate path looms and retailer earnings

U.S. stock index futures edged lower on Monday as traders juggled the prospect of an early Fed rate cut with the loomingJackson Hole Economic Policy Symposium and a slate of retailer earnings that could illuminate consumer demand. Market participants are watching for clues from Federal Reserve Chair Jerome Powell on Friday about the central bank’s near-term policy path, with markets broadly pricing in a rate cut as early as September at odds with lingering inflation risks tied to tariff dynamics and a high-level debate over monetary policy direction.

Futures tied to the major indices were modestly softer in early trading. The S&P 500 and Nasdaq 100 were positioned to pull back after a late-week rally last week that left the Dow Jones Industrial Average and broad indicators showing a cautious tone. Traders noted that last week the Dow rose about 1.7%, while the S&P 500 and Nasdaq gained roughly 0.9% and 0.8%, respectively, in a period marked by mixed data and a shift in sentiment toward potential policy easing. In the bond market, the 10-year Treasury yield hovered around 4.30% and the two-year around 3.76%, reflecting ongoing sensitivity to the Fed’s communications and...