TLDR
- The Dow, S&P 500, and Nasdaq all climbed Friday after Fed Chair Kevin Warsh spoke at the Jackson Hole Symposium.
- Warsh flagged concerns about persistent inflation, pushing the odds of a September rate hike to 55.7%, up from 35.4% the day before.
- The 2-year Treasury yield rose to 4.3%, while the 10- and 30-year yields dipped slightly.
- Nvidia’s bullish long-term AI outlook continued to lift tech stocks, following a strong Thursday session.
- Salesforce surged to its best day since 2020 after brushing aside concerns about a slowdown in software spending.
Stocks edged higher on Friday as Wall Street digested Federal Reserve Chair Kevin Warsh’s first Jackson Hole speech since taking the top job. All three major indexes finished the session in positive territory.
The Dow Jones Industrial Average rose around 0.37%, while the S&P 500 gained 0.49%. The Nasdaq Composite climbed 0.57%, building on Thursday’s tech-driven rally.
Warsh Puts Rate Hike Back on the Table
Warsh used his Jackson Hole address to stress concern about inflation staying above the Fed’s target. His remarks were seen as hawkish, meaning he left the door open to raising interest rates.
FED WARSH AT JACKSON HOLE (Summary):
On policy:
• He gave no timetable for a rate hike and said the speech should not be viewed as forward guidance or a formal reaction function
• Short-term interest rates remain the Fed’s main policy tool
• A “good majority” at the July… pic.twitter.com/pUZUOUa0Lj
— Wall St Engine (@wallstengine) August 28, 2026
Traders responded quickly. The probability of a rate hike at the September 15-16 Federal Open Market Committee meeting jumped to 55.7%, according to the CME FedWatch Tool. That figure was just 35.4% the previous day.
The odds of rates staying flat through year-end fell sharply, from 25.9% down to 14.8%.
Peter Boockvar, chief investment officer at One Point BFG Wealth Partners, said Warsh did a good job of laying out his framework for guiding monetary policy decisions going forward.
Fed officials had been divided heading into Jackson Hole on whether to raise rates. Warsh’s speech did not remove that uncertainty entirely, but it gave markets a clearer picture of what the Fed is watching.
Treasury Yields Move as Markets Recalibrate
Bond markets shifted in response. The 2-year Treasury yield rose to 4.3%. The 10-year yield fell to 4.67%, and the 30-year yield dropped to 5.16%.
Earlier in the month, longer-dated yields had hit multiyear highs, driven by concerns over inflation and the size of the national debt.
Tech Stocks Stay Strong After Nvidia Boost
Thursday’s session had already given stocks a lift, led by Nvidia. The chipmaker offered a bullish long-term outlook tied to artificial intelligence demand, which helped restore confidence in the AI trade.
That momentum carried into Friday. Tech stocks stayed firm even as rate hike expectations climbed.
Salesforce also had a strong session Thursday, posting its best single-day gain since 2020. The move came after the company pushed back against fears of a broader software market slowdown.
There were no major earnings reports on Friday. The University of Michigan’s consumer sentiment survey was released during the session, giving investors a read on how Americans are feeling about the economy.
Markets closed the week on a positive note despite the uncertainty Warsh’s speech reintroduced around the path of interest rates.
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