A Hawkish Fed Speech Turns a Green Morning Red

U.S. stock markets reversed early gains after Federal Reserve Chair Kevin Warsh delivered a hawkish Jackson Hole speech, signaling that rate cuts are unlikely in 2026 and potential rate hikes remain on the table. The speech caused the S&P 500 to fall 0.13% and the Nasdaq to drop 0.30%, with growth stocks like Nvidia particularly hard hit. The two-year Treasury yield jumped significantly and September rate hike odds increased to roughly 50%.