US pre-open: Stocks seen muted ahead of Powell speech

US stocks looked set for a muted open on Wednesday as investors eyed the Jackson Hole symposium and in particular a speech by Federal Reserve chair Jerome Powell.

At 1030 BST, Dow Jones Industrial Average, S&P 500 and Nasdaq futures were all flat.

Victoria Scholar, head of investment at Interactive Investor, said: "The dollar is trading close to 20-year highs against the euro as central bankers get set to gather at the three-day Jackson Hole monetary policy conference in Wyoming with investors hunting for clues from Fed speakers on the strength of the US economy and the outlook for inflation.

"FOMC members are walking a tight rope with the unenviable task of attempting to steer interest rates to a level that offsets some of the supply side imported inflationary pressures without inadvertently inducing an economic recession.

"Where that sweet spot lies or in fact whether it exists at all is yet to be seen and depends on the pace at which inflation and inflation expectations increase from here. Friday is a critical day for Fed watchers with the release of the US PCE price index (the Fed’s preferred measure of inflation) and Fed chair Jay Powell’s address at Jackson Hole when he may signal that a recession is a necessary evil to bring inflation back to target."

On Tuesday, Minneapolis Federal Reserve Bank President Neel Kashkari expressed concerns that inflation will turn out to be worse than expected and require more aggressive central bank policy to bring price levels back down. He suggested that the official policy rate should increase by two percentage points by the end of next year.

On the macro front, durable goods orders for July are due at 1330 BST, while pending home sales are at 1500 BST.

In corporate news, Nordstrom looked set for heavy losses at the open after the department store chain downgraded its full-year outlook due to slowing customer demand.