U.S. stock index futures edged up slightly in volatile trading ahead of Powell's speech.

Prior to Federal Reserve Chairman Jerome Powell's speech at the Jackson Hole symposium, US stock index futures paused this week's decline in volatile trading, with reduced bets on an upcoming rate cut. S&P 500 futures rose 0.1%, after the US benchmark index had declined for five consecutive trading days. Nasdaq 100 futures remained largely unchanged. European stock markets rose 0.2%, nearing historical highs. US Treasury bonds stabilized after falling on Thursday, with the 10-year yield at 4.33%. Wall Street awaited Powell's speech. As investors awaited Powell's latest policy blueprint and weighed whether the Fed would remain cautious about inflation or lean towards supporting a weak labor market, the selloff in large tech stocks paused the record rally in the US stock market. Swaps trading significantly reduced the likelihood of recent aggressive easing policies, with current market pricing indicating a 70% probability of a rate cut next month, less than twice this year. Just over a week ago, the market was betting on a 25 basis point rate cut in September, with some traders even preparing for a 50 basis point cut. Pressure from the Trump administration for a rate cut, as well as increasing divisions within the Fed's rate-setting committee, added to the growing risks. In order to retain flexibility, Powell may emphasize that the Fed's actions in September will depend on job and inflation data released early next month. He is scheduled to speak at 10 a.m. New York time. Panmure Liberum strategist Joachim Clement said, "If the Fed does not cut rates in September, the market will fall, as they are expecting some action. If the rate cut is too large, the market may see it as a signal that the Fed is losing its independence, which could lead to higher inflation. It's like the story of Goldilocks, with two bears and a bull."