Stock futures are flat in overnight trading after a losing week

An American trader works on the New York Stock Exchange's floor in Manhattan, New York City. August 20, 2021.
After a volatile week on Wall Street, stock futures fell overnight on Sunday as investors waited for a key event in which the Federal Reserve might hint at potential tapering of stimulus.

Futures linked to the Dow Jones Industrial Average climbed 15 points. Both futures for the S&P 500 and Nasdaq 100 were slightly higher.

Major averages fell after a week of losses as investors worried that the Fed's possible move to reduce monetary stimulus could slow down an economic recovery already hampered by the introduction of the delta Covid-19 variation.

Blue-chip Dow dropped 1.1% last week while S&P 500 fell nearly 0.6%. This broke a two-week winning streak. The tech-heavy Nasdaq dropped 0.7% last week.

Craig Johnson, technical market strategist at Piper Sandler said that "we suspect investor conviction is being undermined by the potential for future monetary policy changes and shifting growth vs. valuation rotations and a rising trajectory in new coronavirus case cases."

The Jackson Hole symposium is eagerly anticipated by traders who are looking for clues about the Fed's timeline to reduce its $120 billion monthly bond-buying program. It will be held virtually on Thursday and Friday.

Major benchmarks are expected to see modest gains for August. The S&P 500 has increased 1.1%, while blue-chip Dow gained 0.5%, and the Nasdaq climbed 0.3%.

Rod von Lipsey (Managing Director at UBS Private Wealth Management) stated that August is historically volatile for markets. "Investors are currently climbing multiple walls full of worries." "At a time when many investors have gone on vacation, the crisis of confidence is being created by an increase in Covid-19 cases as well as a spiraling downward in Afghanistan.

Bitcoin traded at $49,821 this weekend, as the largest cryptocurrency in the world continues to rebound from months of weakness.