US Stocks Hold Steady Amid Growing Expectations for Rate Hikes

The US stock market held steady on Friday, despite growing expectations for the Federal Reserve to raise interest rates soon.

According to data from CME Group, traders are now betting on a nearly 46% probability that the Fed will hike its federal funds rate as soon as next month, up from 35% the day before.

The S&P 500 rose 0.3%, while the Dow Jones Industrial Average was up 89 points, or 0.2%, as of 10:45 a.m. Eastern time.

Kevin Warsh's first speech as Fed chairman at the annual economic symposium in Jackson Hole, Wyoming, sparked a reaction from bond investors, with the yield on the two-year Treasury jumping to 4.30% from 4.22% just before the speech.

Warsh emphasized that short-term interest rates are the predominant tool for the Fed to control inflation and keep the job market strong, but also noted that broad financial conditions are not restrictive enough.