Stock futures edged higher in the pre-market session, exhibiting a cautious optimism ahead of Federal Reserve Chairman Jerome Powell's highly anticipated speech at the Jackson Hole Economic Symposium.

Investors are keenly awaiting any clues about the central bank's future monetary policy trajectory, particularly regarding the possibility of further interest rate hikes.

The current tilt upward reflects a degree of hope that Powell's remarks might signal a potential pause or even a slowdown in the aggressive rate-hiking cycle.

Recent economic data, showing signs of cooling inflation and a softening labor market, has fueled speculation that the Fed might be nearing the end of its tightening campaign.

However, this optimism is tempered by considerable uncertainty.

Powell could just as easily reinforce the commitment to bringing inflation down to the 2% target, even at the cost of slower economic growth, potentially triggering a market sell-off.

The market's anticipatory movement highlights the significant influence Powell holds over investor sentiment.

His words carry immense weight, capable of swaying market direction significantly, depending on the perceived hawkishness or dovishness of his message.

The lack of definitive information prior to the speech contributes to the volatility and the cautious nature of the pre-market gains.

Investors are essentially betting on a more favorable outcome, but remain prepared for a potentially negative reaction if Powell’s message deviates from their expectations.

The coming hours will be critical in determining the market's immediate response and setting the tone for the coming weeks.

U.S. stock futures inched higher Friday as investors await news out of Jackson Hole, Wyoming, where Federal Reserve Chair Jerome Powell is set to speak later this morning.

S&P 500 futures were up 15 points, or 0.2%, as of 8:55 a.m. EST, while Dow Jones Industrial Average futures added 140 points, or 0.3%. Tech-heavy Nasdaq Composite futures were up 0.2%.

World shares were mixed, in response to a in Walmart stock Thursday and as investors eagerly hope for signs of a rate cut from the Fed.

Traders will be eyeing Fed Chair Powell's speech at the Jackson Hole economic forum to see if he hints at a potential rate cut at the central bank's next meeting, which is scheduled for Sept. 17. The central leader is expected to speak at 10 a.m. at the  hosted by the Federal Reserve Bank of Kansas City.

While Powell will likely touch on economic trends on Friday, he's expected to keep the question of a Fed rate cut close to his chest.

So far this year, the 12-member Federal Open Market Committee (FOMC) which Powell serves as the chairman of, has held off on a rate cut, maintaining a cautious approach as it continues to assess the impact of the Trump administration's tariffs. That's despite pressure from President Trump, who has the central bank leader to lower rates.

The Federal Reserve is tasked with keeping inflation in check while also maintaining maximum employment — a challenging mandate in light of the recent slowdown in job growth and that the president's tariffs may be starting to drive up prices. The Consumer Price Index in July rose 2.7% on an annual basis, slightly cooler than economists' forecasts, but still above the Fed's 2% target.

"What is critical in Fed Chair Powell's speech today is how confident he is that inflation is moving down toward the Fed's 2% inflation target," Apollo Chief Economist Torsten Slok  said in a research note on Friday.