Tech Turmoil Rocks US Futures as Investors Brace for Fed Showdown

On August 21, 2025, US stock futures opened with an uneven tone as investors weighed fresh doubts over the sustainability of the tech rally against the high-stakes policy signals expected from the Federal Reserve.

The Nasdaq-100 managed to edge higher in pre-market trading, but both the Dow Jones and S&P 500 pointed lower, reflecting broader caution. Traders are torn between chasing growth in artificial intelligence names and bracing for potential shocks from Fed Chair Jerome Powell's Jackson Hole remarks, which could reshape expectations for rate cuts heading into the fall.

Walmart's earnings release later today will serve as a proxy for US household spending power. If the retailer signals that shoppers are pulling back on discretionary items, it could reinforce concerns about slowing growth. A strong report, on the other hand, may spark optimism but also dampen expectations of an imminent Fed rate cut, since resilient spending reduces pressure to ease policy.

The market remains caught between optimism about earnings resilience and anxiety over policy, tech valuations, and slowing growth. Jerome Powell's Jackson Hole speech will be a crucial test, as investors bet heavily on at least one rate cut before year-end. The next 24 hours carry outsized importance, as the Fed's stance will determine whether the market sees a fresh risk rally or a sharp decline in bond yields.