Powell speech, consumer sentiment, Hibbett earnings: 3 things to watch

Investing.com -- Stocks sank on Thursday despite strong earnings from chip maker Nvidia (NASDAQ: NVDA) as investors turned their attention to the Federal Reserve's annual meeting in Jackson Hole, Wyo.

The meeting comes as the Fed faces the choice of raising interest rates again or keeping rates steady after raising them in July. Their next policy meeting is in September. Futures traders are already betting that there will be a pause, but they also see a chance the Fed raises by another quarter of a percentage point at its November meeting.

The Fed is trying to walk a tightrope. Inflation 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. But the Fed also wants to cool the economy without triggering big job losses.

Analysts in recent weeks have lowered the likelihood of a recession in the next 12 months, based on the resiliency seen in the economy. Some analysts even see the Fed prepared to cut rates starting next year.

Federal Reserve Chair Jerome Powell is expected to speak about the central bank's next steps when it comes to taming inflation and how much longer it will take.

Here are three things that could affect markets tomorrow:

1. Powell speech

The Fed's Powell is expected to address the officials gathered in Jackson Hole at 10:05 ET (14:05 GMT).

2. Consumer sentiment

The University of Michigan's latest consumer sentiment reading for August is due out at 10:00 ET. Analysts expect a recording of 71.2, which would be down slightly from the earlier 71.6 reading.

3. Hibbett earnings

The sporting goods retailer Hibbett Sports Inc (NASDAQ: HIBB) is expected to report earnings per share of 74 cents on revenue of $377 million.

You May Also Be Interested In

• Morgan Stanley sees quality stocks and AI adopters leading market
• Truflation sees July core PCE at 0.2% MoM, says Fed won’t hike this year
• Citi maintains neutral stance on European equities despite rally