Warsh Warning Sends Equities into Retreat at Jackson Hole

Kevin Warsh's recent address at Jackson Hole weighed on US equities last Friday, despite the market ending the week higher. He reaffirmed the Federal Reserve's commitment to a 2% inflation target and warned that persistent inflation could lead to a rate rise, contradicting Treasury Department actions aimed at keeping yields low.

The Nasdaq outperformed after Nvidia earnings boosted the AI theme, while European indices were mixed, with Zurich's SMI being the only decliner. The FTSE, Amsterdam's AEX and Germany's DAX finished near weekly highs.

In the commodities space, precious metals and Treasuries ended the week at their lows, though a bullish divergence between 10-year T-Notes and 30-year T-Bonds remains intact. Cryptocurrencies were flat after last week's advance, while crude oil finished lower but off its lows.