Stock market today: Nasdaq leads US futures higher as Powell waits in the wings

US stock futures climbed on Friday in the run-up to a pivotal speech by Federal Reserve Chair Jerome Powell that is likely to shape expectations on policy, the economy, and the future path of interest rates.

S&P 500 futures (ES=F) rose 0.5%, while Dow Jones Industrial Average futures (YM=F) added 0.3%. Contracts on the tech-heavy Nasdaq 100 (NQ=F) led gains, up roughly 0.8%, as all three gauges eyed a comeback from Thursday's closing losses.

Spirits have turned buoyant as a day of reckoning for rate-cut bets finally arrives, after a week of mounting anticipation for what Powell will reveal in his comments Friday morning at Jackson Hole.

Slowing economic data has convinced the market to position for the Fed to lower rates in September, with opinion divided on the depth of the cut. Traders are pricing in a 75% chance of a reduction of 25 basis points and 25% odds of 50 basis points, per CME's FedWatch tool.

Read more: Fed predictions for 2024: What experts say about the possibility of a rate cut

Powell's speech at 10 a.m. ET could test that confidence, though some believe the Fed chief will steer clear of short-term guidance to concentrate on broader issues. History suggests Powell will play it safe and likely spare the market a shock.

The benchmark 10-year Treasury yield (^TNX) was steady at around 3.85% in early trading ahead of the Fed chief's appearance.

Meanwhile, investors absorbed the surprise departure of Nestle (NSRGY, NESN.SW) CEO Mark Schneider, which put pressure on shares in the world's biggest foodmaker.