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August 28, 2026 - 15:30
5 minutes
(Bloomberg) — Wall Street traders refrained from making big moves ahead of Federal Reserve Chair Kevin Warsh’s keynote speech on Friday, with stocks, bonds and the dollar wavering.A chorus of investors is urging Warsh to express a strong determination to deal with high inflation to boost the long end of the Treasury market, whose yields hit the highest since 2007 last week. The S&P 500 was little changed while still heading toward a gain for the week. A rally in chipmakers took a breather, with Marvell Technology Inc.’s results failing to inspire.In his first major speech since taking the helm of the world’s top central bank, Warsh will give opening remarks at 10 a.m. New York time. The event in Jackson Hole, Wyoming is shaping up as a test of his scaled-back communications style.Fed watchers are hoping the new chairman will provide more clarity on his outlook for the economy and how the Fed will bring inflation back to the target. He might also use the stage to address other, longer-term monetary policy debates.Warsh will likely stick to broad themes, but the footnotes, citations, and references may reveal what he’s reading, who is influencing his thinking, and where policy discussions could be headed, according to Jeffrey Roach at LPL Financial.“I do not expect Chair Warsh to provide a roadmap for upcoming policy meetings,” he said. “Investors should focus on how he connects inflation, productivity, and the bond market.”To achieve a “bull success,” Warsh will have to reinforce his inflation-fighting credentials to keep short-term yields in check, while signaling support for Treasury Secretary Scott Bessent’s efforts to contain longer-term borrowing costs, according to Bank of America Corp.’s Michael Hartnett.“We believe the chance this morning of Warsh discussing his plans to combat inflation is very low,” said Chris Low at FHN Financial. “He has repeatedly defended the value of holding his cards close and allowing the market to draw its own conclusions about future policy.”While much of Wall Street is standing by to hear what Warsh has to say Friday, history suggests the stock market is likely to react with a whimper rather than a roar.Despite a few exceptions, a Fed chair’s speech at the symposium normally isn’t a big catalyst for stocks — unless it comes before a crucial shift in monetary policy. Since 2000, the S&P 500 has gained just 0.4% on average in the week following the gathering, data compiled by Bloomberg show. And options markets aren’t pricing in any fireworks this time either.Corporate Highlights:A consortium of buyout firm Advent and payment processor Stripe has decided to abandon its pursuit of fintech pioneer PayPal Holdings Inc., a potential deal that would have ranked as one of the biggest-ever leveraged buyouts, according to people familiar with the matter. Eli Lilly & Co.’s blockbuster diabetes drug Mounjaro won US approval to reduce the risk of serious cardiovascular problems, broadening the medicine’s reach beyond controlling blood sugar and strengthening its position in the increasingly competitive market for GLP-1 drugs. Gap Inc. named a retail industry veteran to head Old Navy while profit outpaced estimates, offsetting a sales decline at the value chain and lower sales guidance. SoftBank Group Corp. is seeking a $10 billion loan, as it looks for more funding to help refinance debt used for its investment in US tech giant OpenAI, according to people familiar with the matter. Tencent Holdings Ltd. released a foundation model it says outperforms rivals Z.AI Co. and Moonshot AI in internal tests, claiming a place among China’s top artificial intelligence players. Some of the main moves in markets:StocksThe S&P 500 was little changed as of 9:30 a.m. New York time The Nasdaq 100 fell 0.3% The Dow Jones Industrial Average rose 0.2% The Stoxx Europe 600 rose 0.5% The MSCI World Index rose 0.2% CurrenciesThe Bloomberg Dollar Spot Index was little changed The euro was little changed at $1.1644 The British pound was little changed at $1.3581 The Japanese yen fell 0.2% to 159.63 per dollar CryptocurrenciesBitcoin fell 1.1% to $79,225.87 Ether fell 0.3% to $2,500.73 BondsThe yield on 10-year Treasuries was little changed at 4.68% Germany’s 10-year yield advanced one basis point to 3.26% Britain’s 10-year yield advanced one basis point to 5.04% CommoditiesWest Texas Intermediate crude fell 1.3% to $82.42 a barrel Spot gold was little changed ©2026 Bloomberg L.P.
