Nasdaq100 futures futures on the Nasdaq100 posted a 0

Futures on the Nasdaq100 posted a 0.27% uptick to 18,210 ahead of Fed Chair Powell’s remarks, with market-implied probabilities showing a 62% chance of a September rate cut. Many traders are hedging through QQQ options to capture potential upside volatility. Some might wonder if such a lofty yield could be highly risky. I don't think so. Ares Capital has maintained or grown its dividend for 64 consecutive quarters (16 years). The company continues to generate strong cash flow that should allow it to extend that streak. Chicago Fed President Austan Goolsbee said on Thursday that new data from his staff indicates the labor market remains stable. “I think it indicates some steadiness in the labor market, and I think the underlying economy is still growing pretty solidly,” Goolsbee said. He reiterated that rates could be lowered “a fair amount” if policymakers gain confidence that inflation is moving back toward the Fed’s 2% target. Also, Dallas Fed President Lorie Logan said she will approach further rate cuts with caution as inflation risks continue to outweigh the threat of higher unemployment. “My forecast has a little bit slower of a normalization of the policy path in order to make sure we get all the way to 2%. So it will take some time,” Logan said. Traders are eyeing Friday’s PCE inflation numbers as a key macro driver for next week’s positioning.