Stocks Poised for Flat Close on August 22 Amid Powell’s Jackson Hole Speech

After a brief pause, daily stock market predictions resume, focusing on tomorrow’s trading session, with market sentiment heavily tied to Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole Economic Policy Symposium in Wyoming. Scheduled for 10 a.m. Eastern Time on Friday, August 22, 2025, Powell’s address, titled “Economic Outlook and Framework Review,” is expected to set the tone for the day. The symposium, hosted by the Federal Reserve Bank of Kansas City and concluding Saturday, has historically swayed markets through insights into monetary policy direction.

Market expectations point to a flat close for major indices, mirroring Thursday’s subdued performance. On August 21, 2025, the S&P 500 slipped 0.4 percent, marking its fifth consecutive decline, while the Dow Jones Industrial Average shed 152 points, or 0.4 percent, and the Nasdaq Composite dipped 0.3 percent. Volatility remained low, reflecting cautious trading ahead of Powell’s remarks. While earlier market pricing suggested a near-99 percent chance of a rate cut, recent Federal Reserve minutes indicate a cautious stance, with no immediate rate reductions expected. Powell may address inflation, labor market trends, and a potential shift from the 2020 policy framework, which could signal slightly higher long-term interest rates, though major policy surprises are unlikely.

Gold prices, sensitive to Fed signals, could see a spike or drop depending on Powell’s tone, though significant volatility is not anticipated. On Thursday, gold edged lower amid a strengthening dollar, but analysts remain bullish, projecting an average price of $3,250 per ounce for 2025, driven by sustained demand and potential currency debasement concerns.

Stocks to Watch:

Palantir Technologies (PLTR):Appears oversold and could see a bounce if Powell’s remarks lean dovish, boosting risk assets.

Hecla Mining (HL):With rate cuts largely priced in, expectations of currency debasement may drive a modest short-term rise in precious metals stocks.

Semiconductors:Continued weakness in the sector warrants attention on NVIDIA (NVDA)and Direxion Daily Semiconductor Bear 3X ETF (SOXS)for potential volatility.

Lennar Corporation (DVR):A potential bounce in housing stocks could occur if Powell signals rate cuts, though any rally may be short-lived.

While a news-driven rally or dip remains possible, the absence of major policy shifts suggests markets will likely hold steady. Investors should monitor Powell’s speech for hints of future Fed actions, particularly on interest rates and inflation management, which could influence short-term market dynamics.