US pre-open: Stocks to fall as investors eye Jackson Hole

US stocks looked set to slump at the open on Monday amid concerns about growth and inflation, as investors looked to this week’s Jackson Hole symposium.

At 1035 BST, Dow Jones Industrial Average futures were down 0.9%, while S&P 500 and Nasdaq futures were 1.2% and 1.5% lower, respectively.

AJ Bell investment director Russ Mould said: "The Jackson Hole summit of central bankers and finance ministers is widely expected to see US Federal Reserve chair Jerome Powell take to the floor and puncture optimism which has built up over hopes the Fed may be nearing the point at which it pivots away from rate hikes.

"The event coincides with the PCE (personal consumption expenditure) measure of inflation, which the Fed often uses as a guide for its actions. If this confirms the trend seen in the July CPI reading of a reduction in inflationary pressures then it might give investors some reason for renewed optimism."

The Jackson Hole symposium will take place on Thursday.

Investors will also be mulling the People’s Bank of China’s decision to cut benchmark loan rates in a bid to boost sluggish economic activity.

The one-year Loan Prime Rate, which serves as a benchmark for corporate loans, was lowered to 3.65% from 3.7%, while the five-year LPR, used to price mortgages, was cut to 4.3% from 4.45%.

Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said: "The move comes after a data set in July highlighted the Chinese economy was slowing down. This latest tactic isn’t entirely a surprise, but it should act as a further indicator that the global economic stage is losing light."

In corporate news, Signify Health surged more than 30% in pre-market trade following a report that Amazon is among the bidders for the US healthcare company. The Wall Street Journal cited people familiar with the matter as saying that Amazon is joining the likes of CVS Health Corp and UnitedHealth Group in an auction for the home-health-services provider.

Sources told the WSJ that Signify is for sale in an auction that could value it at more than $8bn.