Warsh's Jackson Hole Warning Sparks Rate Hike Fears, Sends Stocks Lower

Federal Reserve Chair Kevin Warsh's speech at Jackson Hole sparked fears of higher interest rates, sending US stock markets lower and Bitcoin plummeting.

Before his remarks, traders saw a 35.4% chance of a September rate hike, but that number jumped to over 57%, according to CME Group's FedWatch tool.

The Nasdaq Composite fell 0.52%, the S&P 500 dropped 0.25%, and the Russell 2000 lost 1.4%. Bitcoin, meanwhile, slid 2.77% as rate hike bets rose.

The dollar surged, posting its biggest daily gain in over two months, while gold and silver fell as the stronger dollar weighed on commodities.