Warsh's Hawkish Warning Sends Stocks Tumbling at Jackson Hole
On August 28th, Federal Reserve Chairman Kevin Warsh delivered a speech at Jackson Hole that sent US stocks tumbling, but ultimately capped off a positive week. In his speech, Warsh reaffirmed his hawkish stance and the Fed's commitment to a 2% inflation target, contradicting the Treasury Department's recent interventions aimed at keeping interest rates from rising.
Nvidia reported blockbuster earnings on Friday, leading the Nasdaq higher and showing that the AI trade remains alive. However, the Lunar Eclipse and Uranus square may have marked a blowoff top for this market-moving name.
The Shanghai Composite, Japanese Nikkei, and Australian All-Ordinaries all notched solid gains in the Asia and Oceania region, while European markets ended mixed with the Zurich SMI finishing lower. Precious metals finished at their lows of the week, and Treasuries fared poorly despite intermarket bullish divergence.
Cryptos were flat on the week as they digested their impressive gains from the prior week. Elevated Crude Oil prices continue to strain the macroeconomic environment.