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August 28, 2026 - 02:10
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(Bloomberg) — US stock futures slipped as investors braced for Federal Reserve Chair Kevin Warsh’s speech in Jackson Hole, where some expect a hawkish tone.Futures for the Nasdaq 100 Index fell 0.3% and those for the S&P 500 Index retreated 0.2% as initial enthusiasm about the artificial intelligence trade following Nvidia Corp.’s bullish outlook waned. Sentiment was weighed down by Marvell Technology Inc., which fell more than 7% in extended trading following its earnings report.MSCI’s Asia Pacific equities gauge edged lower with shares in South Korea falling 1.3%.Treasuries fell for a second day Thursday ahead of Warsh’s remarks, with yields rising two to three basis points across the curve amid concerns about inflation and US fiscal outlook.US crude was steady, trading at around $83.40 a barrel amid signs that diplomatic efforts toward an agreement over the Strait of Hormuz have hit fresh hurdles. Separately, Venezuela is closely examining plans to leave OPEC, according to people familiar with the matter.Warsh’s speech will be key in determining whether the recent rise in bond yields has further to run, with investors looking for clues on how the Fed will balance persistent inflation pressures against signs of a cooling economy. A lack of clarity on the policy path may add to volatility in longer-maturity Treasuries and spill over into stocks.“If he does not give any framework guidance, the risk is that it will involve a much higher move in long rates,” Torsten Slok, chief economist at Apollo Global Management, said in an interview with Bloomberg Television.Traders also assessed fresh clues on the Fed’s policy path, including a drop in US jobless claims and rising wholesale inventories, while the merchandise trade deficit widened in July to the largest since early last year.Kansas City Fed President Jeff Schmid said monetary policy isn’t restraining the economy. Fed policymakers left the federal funds rate unchanged at 3.5% to 3.75% at their latest meeting, while futures are pricing in a quarter-point increase by year-end.“Warsh’s speech at Jackson Hole is an opportunity to contain the continued sell-off in long-end Treasuries,” wrote Dhiraj Narula, US rates strategist at HSBC. “Clarity on the Fed’s inflation reaction function could help compress uncertainty-related term premium.”A clear policy signal will likely be scarce given Warsh’s reluctance to provide forward guidance, said Elias Haddad at Brown Brothers Harriman & Co. Instead, Warsh may preview the Fed’s five task forces’ early findings on communications, the balance sheet, economic data, productivity and jobs, and the inflation framework, he said.In Asia, the yen hovered around 159.35 per dollar as investors remained on watch for any support by Japanese authorities. Data is due Friday from the Finance Ministry on how much the nation spent on intervention over the past month.In other corners of the market, gold was little changed to trade around $4,600 an ounce. Bitcoin traded just over $80,000.Elsewhere, US technology stocks rallied Thursday on Nvidia’s blockbuster outlook, lifting the major indexes even as every other sector in the US market declined.While questions over the sustainability of AI spending may continue to fuel bouts of volatility in tech, accelerating investment in the sector may also add to inflation and upward pressure on bond yields.“As is usually the case when tech ramps, the group is sucking oxygen from the rest of the market,” Vital Knowledge founder Adam Crisafulli wrote in a note. The “accelerating AI boom is creating upside risk for yields,” he said.Corporate Highlights:Nvidia Corp. is nearing an agreement to acquire Hugging Face in a deal that would value the AI startup at roughly $13 billion, according to news reports. Mizuho Bank Ltd. has initiated legal action against Radiant World in Singapore’s Supreme Court, according to the court system’s website. Moderna Inc. plans to raise $2 billion from selling notes that can be exchanged for shares, which it will use to invest in its cancer vaccine business and repay debt. Some of the main moves in markets:StocksS&P 500 futures fell 0.2% as of 9:06 a.m. Tokyo time Hang Seng futures fell 0.5% Japan’s Topix rose 0.4% Australia’s S&P/ASX 200 rose 0.3% Euro Stoxx 50 futures fell 0.8% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was unchanged at $1.1653 The Japanese yen was little changed at 159.33 per dollar The offshore yuan was little changed at 6.7197 per dollar The Australian dollar was little changed at $0.7196 CryptocurrenciesBitcoin rose 0.1% to $80,205.54 Ether was little changed at $2,508.15 BondsThe yield on 10-year Treasuries was little changed at 4.67% Japan’s 10-year yield advanced 1.5 basis points to 2.905% Australia’s 10-year yield advanced two basis points to 5.11% CommoditiesWest Texas Intermediate crude was little changed Spot gold was little changed This story was produced with the assistance of Bloomberg Automation.–With assistance from Ruth Carson.©2026 Bloomberg L.P.
