Dollar Rebound Slams Gold and Bitcoin as Hawkish Warsh Sways Markets

The US dollar rebounded today after Fed Chair Kevin Warsh's hawkish speech at Jackson Hole, leading to a decline in assets that are typically negatively correlated with the dollar.

Gold fell by nearly 3% as the stronger dollar encouraged investors to take profits from precious metals. Bitcoin also dropped, losing around $2,500 in value to trade near $77,000.

The Nasdaq 100 and Nvidia shares were hit hard, with declines of over 0.6% and 3.5%, respectively, after yesterday's strong gains. The DJIA was relatively flat, while the S&P 500 fell by around 0.2%.

Warsh signaled that US economic growth remains robust, but inflation remains above target, leaving Fed policymakers with little room for comfort and potentially requiring further policy action.