U.S. stock futures flat as chances of rate hike rise after Warsh’s Jackson Hole comments

U.S. stock-index futures were little changed Sunday evening, reflecting investor caution after comments from Kevin Warsh at the Jackson Hole symposium were read as hawkish. His remarks raised the perceived likelihood of another interest-rate hike, a shift from earlier market hopes for rate cuts. With expectations recalibrating, traders showed little appetite for adding risk ahead of a busy week.

The muted price action suggests a wait-and-see stance. Fresh labor-market data is due this week and will offer clues on whether the economy is cooling enough to keep the Federal Reserve on hold, or whether price pressures remain sticky enough to warrant further tightening. At the same time, a slate of technology earnings will test whether high valuations can hold up in a higher-for-longer rate environment. Together, these inputs could set the tone for markets in the weeks ahead, as investors balance stronger growth against the risk that borrowing costs stay elevated.