The Nasdaq 100 slid 1% to 29,359 as Wall Street handed back a chunk of Thursday’s Nvidia-powered tech rally on Friday after Federal Reserve Chair Kevin Warsh used his first Jackson Hole speech to tell investors that the inflation fight is far from over.
“This summer’s inflation data is better than expected, but do not tell me underlying trends have meaningfully improved,” Warsh said. Financial conditions are not currently restrictive and the labor market is consistent with full employment, he explained.
Money markets now assign roughly a 60% probability to a hike at the September meeting, up from about 35% before the speech, according to CME FedWatch.
The Front End Bore The Brunt of It
The 2-year Treasury yield jumped 10 basis points to 4.34%, while the 10-year yield rose 4 basis points to 4.72% after touching 4.7% intraday.
