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August 28, 2026 - 07:57
6 minutes
(Bloomberg) — US stock-index futures slipped and Treasuries steadied as traders avoided big bets before Federal Reserve Chair Kevin Warsh’s Jackson Hole speech, looking for clues on the path of interest rates.Nasdaq 100 contracts slipped 0.3% as initial enthusiasm for the artificial intelligence trade after Nvidia Corp.’s bullish outlook waned. Marvell Technology Inc. added to the pressure, falling more than 7% in extended trading after its earnings report. Asian equities posted a modest 0.2% advance, while European markets were set for a similar gain at the open.Treasuries held Thursday’s losses, when yields rose two to three basis points across the curve amid concerns about inflation and the US fiscal outlook. Warsh is due to speak at the Fed’s annual gathering in Jackson Hole, Wyoming, with some investors expecting a hawkish tone. The yield on the rate-sensitive two-year note held at 4.23%. The dollar was flat.The modest moves across assets showed traders were reluctant to add to positions before Warsh’s speech, which may determine whether the recent rise in bond yields has further to run. Investors will look for clues on how the Fed will balance persistent inflation against a cooling economy, with any lack of clarity likely to fuel volatility in longer-dated Treasuries and stocks already grappling with concerns over massive AI spending.“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.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. Kansas City Fed President Jeff Schmid said monetary policy isn’t restraining the economy.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.“Warsh’s speech at Jackson Hole is an opportunity to contain the continued selloff in long-end Treasuries,” wrote Dhiraj Narula, US rates strategist at HSBC. “Clarity on the Fed’s inflation reaction function could help compress the uncertainty-related term premium.”In Asia, the yen weakened slightly to trade around 159.55 per dollar after Tokyo’s key inflation gauge accelerated for a third month. A sale of Japan’s two-year government bonds at auction Friday saw weaker demand amid growing speculation of central bank tightening.In other corners of the market, gold edged lower to trade near $4,575 an ounce, while Bitcoin slipped to just under $80,000. Copper nudged closer to a record high.Brent fell 0.5% to about $89.30 a barrel even as diplomatic efforts toward an agreement over the Strait of Hormuz hit fresh hurdles. Separately, Venezuela was closely examining plans to leave OPEC, according to people familiar with the matter.On Thursday, US technology stocks rallied on Nvidia’s 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.“The tailwinds from Nvidia’s results may thus quickly fizzle over the course of the trading day as investors prepare for the impact from the speech by Fed Chair Warsh,” said Frederic Neumann, chief Asia economist at HSBC.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. A consortium of buyout firm Advent and payment processor Stripe has decided to abandon its pursuit of fintech pioneer PayPal Holdings Inc., according to people familiar with the matter. Toyota Motor Corp.’s car sales fell for a sixth straight month as rising gasoline prices weighed on demand for non-electric vehicles in China. Some of the main moves in markets:StocksS&P 500 futures fell 0.1% as of 6:51 a.m. London time Nasdaq 100 futures fell 0.3% The MSCI Asia Pacific Index rose 0.2% The MSCI Emerging Markets Index was little changed Japan’s Topix rose 0.6% Australia’s S&P/ASX 200 rose 0.5% Hong Kong’s Hang Seng rose 0.3% The Shanghai Composite rose 0.1% Euro Stoxx 50 futures rose 0.3% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1643 The Japanese yen was little changed at 159.53 per dollar The offshore yuan was little changed at 6.7219 per dollar The British pound was little changed at $1.3588 CryptocurrenciesBitcoin fell 0.3% to $79,834.01 Ether fell 0.5% to $2,495.54 BondsThe yield on 10-year Treasuries was little changed at 4.68% Japan’s 10-year yield advanced 3.5 basis points to 2.925% Australia’s 10-year yield advanced two basis points to 5.11% CommoditiesSpot gold fell 0.5% to $4,574.76 an ounce West Texas Intermediate crude fell 0.4% to $83.17 a barrel This story was produced with the assistance of Bloomberg Automation.–With assistance from Ruth Carson and Aya Wagatsuma.©2026 Bloomberg L.P.
