U.S. stocks remained relatively stable during Friday’s trading session.
This came amid growing expectations of an imminent U.S. interest rate hike.
This followed Federal Reserve Chair Kevin Warsh’s first speech at the Jackson Hole economic symposium.
The S&P 500 rose 0.3%, while the Dow Jones Industrial Average gained 89 points.
That is, by 0.2%. Similarly, the Nasdaq Composite Index rose 0.3%.
Warsh emphasized that the Fed would face “work to be done” if inflation remained above the 2% target.
He also noted that short-term interest rates are the primary tool for controlling inflation and supporting the labor market.
Following the speech, the yield on the two-year U.S. Treasury note rose to 4.30%.
It had previously stood at 4.22%. In contrast, the yield on 10-year Treasury bonds held steady at 4.67%, while the yield on 30-year bonds fell to 5.16%.
Traders are now pricing in a 46% probability of an interest rate hike next month, compared to about 35% the previous day.
On the corporate front, JAB shares jumped 13.9% following strong quarterly results.
In contrast, Marvel Technology shares fell 7%, even though the company’s earnings and revenue exceeded analysts’ expectations.
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