Live Markets: Wall Street weakens as Warsh comments fuel rate hike bets

Ulta Beauty

28/08/2026 21:34

S&P 500, Nasdaq end modestly red; Dow ends just below flat
Consumer discretionary leads S&P 500 sector gainers; tech weakest group
Dollar rallies; US crude slips; bitcoin, gold both down >3%
US 10-year Treasury yield rises to ~4.73%
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WALL STREET WEAKENS AS WARSH COMMENTS FUEL RATE HIKE BETS 
Major U.S. stock indexes ended lower on Friday after comments by Federal Reserve Chairman Kevin Warsh fueled bets on a September rate hike.
Warsh said at the annual Jackson Hole symposium that the U.S. central bank will "have work to do" if policymakers don't get the confidence they need that inflation is heading down to the Fed's 2% target.
Fed funds futures traders are now pricing in 57% odds of a hike at the Fed's September 15 to 16 meeting, up from 35% before Warsh's comments. U.S. Treasury yields US10YT=RR also jumped.
"While (Warsh) didn’t commit to a September rate hike, his assessment of persistently high inflation, economic resilience, and non-restrictive financial conditions seemed to keep a hike firmly on the table," Keith Lerner, chief investment officer at Truist Wealth, wrote in a note after the remarks. 
Indexes edged higher in choppy trading following the morning comments but eased by afternoon trading. 
Technology .SPLRCT was down the most of the S&P 500 .SPX sectors on the day, followed by rate-sensitive utilities .SPLRCU. 
Among the day's gainers, Gap GAP.N shares shot up 13% after the company reported results and named industry veteran Michael Francis as CEO of Old Navy.
At the same time, shares of Ulta Beauty ULTA.O fell 4.2%, also following the company's quarterly results late Thursday. 
Here is the closing snapshot:
(Caroline Valetkevitch)
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EARLIER ON LIVE MARKETS:
US COMPANY COMMENTS SUGGEST AI BUILDOUT SHOWING NO SIGNS OF LETTING UP CLICK HERE 
HYPERSCALERS ARE CHASING AGI, BUT INVESTORS WANT PROOF CLICK HERE
UMICH: CONSUMERS WRAP UP THE SUMMER ON A SLIGHTLY LESS DOUR NOTE CLICK HERE
STOCKS EDGE HIGHER BUT ARE CHOPPY AS WARSH SPEAKS CLICK HERE
TREASURY YIELD BULLS HOLD THE UPPER HAND AHEAD OF JACKSON HOLE CLICK HERE
GROWTH DOWNGRADE IS TOUGH SERVE FOR FRANCE CLICK HERE
WHY EUROPEAN EARNINGS GROWTH IS HERE TO STAY CLICK HERE
STOXX SHOOTING FOR WEEKLY GAIN CLICK HERE 
EUROPE BEFORE THE BELL: CALM WATERS...FOR NOW CLICK HERE
WARSH HEADS INTO JACKSON HOLE HOT SEAT CLICK HERE
     

Closing snapshot https://fingfx.thomsonreuters.com/gfx/mkt/mypmwzbbapr/Pasted%20image%201787949067085.png