Nasdaq Slips Ahead of Warsh Speech Amid Rate Hike Speculation

Federal Reserve Chair Kevin Warsh's speech at Jackson Hole on Friday is expected to be closely watched by investors, particularly after the central bank chief has been tight-lipped about interest rates. The U.S. Treasury's move to calm bond markets last week has put his speech in sharper focus.

Analysts at StoneX said Warsh does not need to pre-commit to a September rate hike at Jackson Hole but needs to establish that inflation failing to decline is sufficient for tightening, which would close the gap with his committee and preserve flexibility to hold interest rates steady.

Nasdaq 100 futures inched lower as an AI-fueled rally cooled off ahead of Warsh's speech. Money market participants are pricing in a 35.9% chance of a rate hike in September, according to CME's FedWatch tool.