U.S. stocks opened with modest gains Friday as investors weighed ongoing inflation concerns and awaited a pivotal speech from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium.

The Dow Jones Industrial Average rose 296 points, or 0.66%, to 45,081.8 at the opening bell. The S&P 500 added 19.06 points, or 0.30%, to 6,389.23, while the Nasdaq Composite slipped 0.15 points to 21,100.2, holding essentially flat. The Russell 2000 gained 0.71% to 227.58, underscoring strength in small-cap shares.

Commodity markets showed mixed signals. Gold futures for December delivery fell 0.42% to $3,367.40, retreating from early-week highs, while crude oil futures rose 0.24% to $63.67, extending a modest rebound.

Fed in the Spotlight

Investors are positioning ahead of Powell’s speech at 10 a.m. ET, which follows the Fed’s decision earlier this week to keep interest rates at 4.25%–4.5%. The minutes revealed that most policymakers favored caution, with “almost all participants” preferring to wait before adjusting policy given tariff uncertainties. Only Governors Michelle Bowman and Christopher Waller broke ranks, urging a cut on the view that inflation—excluding tariffs—was near target.

Disinflation progress has slowed, with June’s core PCE holding at 2.7%, while tariffs continue to complicate the outlook. “Goods inflation is rising because of tariffs and the depreciation of the dollar … there are also signs that service sector inflation is about to move higher,” said Torsten Slok, Chief Economist at Apollo Global Management. His comments capture the core challenge facing the Fed: inflation pressures in both goods and services at a time when growth signals are softening.

Tech and AI in the Crosshairs

Beyond the Fed, Wall Street remains focused on the durability of the AI-driven tech rally. Wedbush Securities analysts, led by Dan Ives, argue the “AI Revolution thesis remains intact”, despite this week’s sell-off in mega-cap tech. They point to overwhelming demand for Nvidia’s chips—estimated at 10-to-1 relative to supply—as evidence of structural momentum, calling next week’s earnings “another positive catalyst”.

Still, with valuations stretched, some investors are bracing for volatility. “Tech sell-offs like this week are opportunities to own the core winners,” Wedbush wrote, highlighting Nvidia and Palantir as key beneficiaries.

Market Outlook

Friday’s session is expected to hinge on Powell’s message from Wyoming. A tone of patience on rate cuts could temper near-term bullishness but reinforce confidence in the Fed’s inflation vigilance. For now, investors are balancing enthusiasm for AI-fueled growth against macro headwinds of tariffs, inflation, and policy uncertainty under President Trump’s administration.