U.S. stocks pare gains after Fed’s Powell says prepared to continue raising rates

Investing.com — U.S. stocks pared some earlier gains after Federal Reserve Chair Jerome Powell told those gathered at the central bank’s annual conference in Jackson Hole, Wyo., that the Fed was prepared to continue raising rates amid too-high inflation.

At 10:32 ET (14:32 GMT), the was down 4 points or flat, while the was up 0.1% and the was up 0.2%.

Wall Street’s main indices slumped Thursday, despite stunning from Nvidia (NASDAQ:), the world’s most valuable chipmaker, as better-than-expected unemployment data saw jitters mount ahead of Powell’s eagerly-awaited speech.

The blue-chip index fell 370 points, or 1.1%, its worst day since March.

Powell’s speech at Jackson Hole in spotlight

The yearly gathering of central bankers in , Wyo., started on Thursday. Last year, Powell used this speech to warn of “some pain” ahead in the battle against inflation, hitting the stock market, and any hints about the Fed’s rate outlook are sure to reverberate strongly. On Friday, he said inflation was still too high despite progress.

“We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective,” Powell said in his speech.

The Fed is trying to walk a tightrope. readings have been cooling in the past few months, but prices still aren’t back to the Fed’s annual 2% target and a still-tight labor market gives officials reason to remain vigilant.

The is expected to keep interest rates unchanged at its next meeting in September, but there still remains a chance that it raises by another quarter of a percentage point at its November meeting.

Michigan consumer sentiment due

The University of Michigan’s latest reading is the main economic data release Friday. It came in at a cooler than expected 69.5 for August versus expectations for a reading of 71.2.

Earlier Friday, data showed that the deteriorated more than expected in August, falling for the fourth month in a row and adding to fears that the eurozone’s largest economy may be heading for its second recession inside a year.

Affirm soars after jump in transactions

The quarterly earnings season is coming to a close. Affirm (NASDAQ:) posted a jump in transactions on its platforms that beat expectations.

Marvell Technology (NASDAQ:) stock fell 8.2% after the chipmaker posted a fall in second quarter , hit by a weak enterprise market, while Hawaiian Electric (NYSE:) slumped 13% after the county of Maui sued the power company, accusing it of acting negligently by failing to shut down its equipment, sparking wildfires.

Crude on course for losing week

Oil prices firmed Friday, but remained on course for a second consecutive week as concerns over slowing Chinese demand and increased U.S. supply as well as a stronger dollar weighed.

The jumped to its strongest level since early June earlier Friday, ahead of a speech by Federal Reserve Chair Jerome Powell at the Jackson Hole symposium. Strength in the dollar weighs on oil markets by making crude more expensive for international buyers.

(Peter Nurse and Oliver Gray contributed to this item.)