FX.co ★ U.S. Stocks May Move Back To The Upside Ahead Of Powell Speech

Following the significant decline in the previous session, stocks are anticipated to rebound in early trading on Friday. The major index futures indicate a positive opening, with S&P 500 futures rising by 0.5 percent.

Investors may view Thursday's sharp decrease as a buying opportunity, driven by continued optimism about the outlook for interest rates.

However, early trading may be somewhat muted as traders await Federal Reserve Chair Jerome Powell's speech at the Jackson Hole Economic Symposium.

Powell is scheduled to discuss the economic outlook at the symposium starting at 10 a.m. ET, with market participants looking for further insights into the future of interest rates.

"Powell is expected to set the stage for the Fed's first rate cut in over four years," said Adam Turnquist, Chief Technical Strategist for LPL Financial. "Indicators of reduced pricing pressures and slowing economic growth will likely prompt policymakers to begin lowering the target rate."

He continued, "However, investors will be keen to hear more details on the longer-term path of monetary policy beyond the anticipated cut in September."

In terms of individual stocks, shares of Workday (WDAY) are soaring in pre-market trading after the human capital management company reported fiscal fourth-quarter results that surpassed analyst expectations on both revenue and earnings.

Off-price retailer Ross Stores (ROST) is also poised for early gains after posting better-than-expected fiscal second-quarter earnings.

Conversely, shares of Las Vegas Sands (LVS) might experience early weakness following UBS's downgrade of the casino and resort company from Buy to Neutral.

Shortly after the market opens, the Commerce Department will release its report on new home sales for July. New home sales are projected to increase by 2.1 percent to an annual rate of 630,000, following a 0.6 percent decline to a rate of 617,000 in June.

On Thursday, after struggling to maintain an early rally, stocks faced significant selling pressure throughout the trading session. Major averages dropped well below their early highs, settling firmly in negative territory.

The Nasdaq and the S&P 500 ended the day near their session lows. The Nasdaq plummeted 299.63 points, or 1.7 percent, to 17,619.35, the S&P 500 fell 50.21 points, or 0.9 percent, to 5,570.64, and the Dow declined 177.71 points, or 0.4 percent, to 40,712.78.

In international markets, stocks in the Asia-Pacific region showed mixed performance on Friday. Japan's Nikkei 225 Index rose by 0.4 percent, while Hong Kong's Hang Seng Index fell by 0.2 percent.

In Europe, major markets have all moved higher. The German DAX Index is up by 0.5 percent, and the French CAC 40 Index and the U.K.'s FTSE 100 Index have both gained 0.4 percent.

In commodities trading, crude oil futures are surging $1.38 to $74.39 a barrel, following a rise of $1.08 to $73.01 a barrel on Thursday. Meanwhile, after dropping $30.80 to $2,516.70 an ounce in the previous session, gold futures are climbing $18.80 to $2,535.50 an ounce.

In the currency market, the U.S. dollar is trading at 146.11 yen, compared to 146.29 yen at the close of New York trading on Thursday. Against the euro, the dollar is valued at $1.1114, up slightly from $1.1112 yesterday.