US stocks fall as Warsh hawkish tone lifts rate-hike bets
US indices closed mostly lower Friday. S&P 500 fell 0.2%, Nasdaq dropped 0.7% and Dow edged lower, while Warsh said underlying inflation isn’t slowing and pledged to fight price growth until it reaches the Fed’s 2% target.
The US stock indices closed mostly lower on Friday as technology shares trimmed the previous session’s gains and a more hawkish tone from Fed Chair Warsh strengthened expectations for a rate hike next month.
The S&P 500 shed 0.2%, the Nasdaq fell 0.7% and the Dow inched lower.
Marvell fell 10.3% despite beating earnings estimates and raising its outlook.
Chipmakers pulled back after rallying on Nvidia’s (-4.6%) strong results earlier in the week, with Broadcom down 0.7%, and AMD falling 2.3%.
Hyperscalers held gains, with Alphabet up 1.5%, Microsoft adding 1.7%, Amazon jumping 4%, and Meta rising 1.2%.
Meanwhile, Warsh said underlying inflation was not slowing and pledged to keep fighting price growth until it converges with the Fed’s 2% target during his speech at Jackson Hole Symposium, prompting traders to increase bets on a rate hike next month.
Industrial and pharmaceutical stocks declined, with AbbVie losing 1% and Lam Research falling 5.2%.