Wall St Ends Lower as Warsh Reaffirms Inflation Fight
Investors added bets on a September rate hike after Warsh said recent inflation data did not show a clear trend change.
- On Friday, Federal Reserve Chairman Kevin Warsh signaled at the Kansas City Fed's annual symposium that the central bank has "more work to do" to reach its 2.0% inflation goal, sparking caution on Wall Street.
- Traders remain split between a September rate hike and a hold, as recent inflation data this month painted a mixed picture that complicates the central bank's policy path.
- Major indices closed lower following the remarks, with the Nasdaq Composite falling 0.52% and declining issues outnumbering advancers by 2.19-to-1 on the Nasdaq exchange.
- Individual stocks showed divergent results, as Marvell Technology tumbled 10.3% on revenue timing doubts and Nvidia slipped 4.6%, while Gap shares advanced after naming a new CEO.
- Aditya Bhave, head of US economics research at Bank of America, noted the speech was encouraging but "talk is cheap," with policymakers needing softer August data to avoid a rate hike.
12 Articles
12 Articles
US Stock Market: Warsh signals Fed may need to raise rates if inflation remains elevated
Fed Chair Kevin Warsh signalled that the US central bank could raise interest rates if inflation fails to move closer to its 2% target, triggering a sharp shift in market expectations. Treasury yields climbed as investors raised bets on a September rate hike, with upcoming inflation and jobs data now in focus.
Fed Chair Warsh's Hawkish Inflation Stance Sends (NASDAQ: QQQ) Nasdaq And (NYSE: SPY) S&P 500 Lower
Federal Reserve Chair Warsh rattled equity markets on Friday, pushing the probability of a rate hike at the September FOMC meeting to 57%, up sharply from 36% before he spoke. The S&P 500 Index (SPY) closed down -0.25%, the Dow Jones Industrial Average (DIA) fell -0.02%, and the Nasdaq 100 Index (QQQ) dropped -0.70% as […] The post Fed Chair Warsh’s Hawkish Inflation Stance Sends (NASDAQ: QQQ) Nasdaq And (NYSE: SPY) S&P 500 Lower appeared first …
The futures of Wall Street point out that U.S. indices are going to start the week as they ended it, with losses.The future of the Dow Jones is listed with drops of 0.1%, as in the case of the S&P 500, while the Nasdaq is still on positive ground, but slightly, with advances of 0.04%.There are doubts in the market after the comments of Federal Reserve President Kevin Warsh, from Jackson Hole, once again fueled expectations about an interest rate…
Investors heartened by Warsh inflation talk, still uncertain about Fed action
Oil prices climb after U.S. strikes Iranian launchers on Larak Island By Lewis Krauskopf, Saqib Iqbal Ahmed and Laura Matthews NEW YORK, Aug 28 (Reuters) - Investors were heartened on Friday by new Federal Reserve Chair Kevin Warsh’s stated resolve to tame high inflation, but many on Wall Street…
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