- Stocks gained and bond yields dropped, with traders awaiting Jerome Powell’s keynote for clues on how much further the federal reservewill pump the brakes on the economy to bring inflation back under control.

- The S&P 500 finished near session highs, reversing a selloff that had knocked the market down earlier in the week. Following the slowest trading day in US equities in 2022, volume was once again below average. Apple (AAPL) and Amazon (AMZN) rose, while Tesla (TSLA) slid as its stock split took effect. Treasury 10-year yields were near 3%, while the dollar fell.

- Investors were mostly unfazed by hawkish remarks from Fed officials gathered in Jackson Hole, Wyoming for the annual conference. The highlight of an event that has been used to make key announcements will be Powell's speech at 10 AM ET on Friday. The Fed's chairman is widely expected to reiterate his commitment to tightening monetary policy in order to combat inflationary spirals.

- Traders will also be looking for clues about the pace of the Fed's balance-sheet runoff, also known as quantitative tightening, which begins in September at a monthly rate of up to $95 billion. While some strategists believe the unwinding will be a threat to equities, others believe there is still plenty of liquidity available from stimulus measures to keep the market afloat.