Nvidia Saves Week, But Hawkish Warsh Shifts Market Focus to Inflation

Nvidia's earnings saved the week for equity markets, but Jackson Hole changed the game with Fed Chairman Kevin Warsh's speech.

Warsh shifted the market's focus back to inflation and policy restraint, making a September hike more likely. He reinforced the 2% inflation target while refusing to pre-commit to the next move, leaving upcoming labor and inflation data to carry more weight.

The uncertainty surrounding the Fed's reaction function has increased the importance of the September data cycle for rates, the dollar, gold, and equities.