US Stocks Climb as Fed's Warsh Keeps Inflation Focus in Spotlight
US stocks edged higher on Friday as investors weighed Federal Reserve Chair Kevin Warsh's renewed focus on inflation. The Dow Jones Industrial Average rose 64.19 points, or 0.12%, to 53,633.63, while the S&P 500 gained 12.05 points, or 0.16%, to 7,743.04.
Warsh's remarks at the Fed's annual gathering in Wyoming sparked increased bets on a September rate hike after he said recent inflation data did not suggest a change in trend. Without confidence that inflation is heading clearly and with sufficient speed to the Fed's 2% goal, the central bank would have 'more work to do,' Warsh said.
Chip stocks retreated after Nvidia's AI-fueled rally, while PayPal tumbled 11.5% following a report that a consortium of buyout firm Advent and payments processor Stripe had abandoned its pursuit of the company. Gap shares surged 15% after it named industry veteran Michael Francis as Old Navy's new CEO and raised its annual profit forecast.