US Stocks Hold Steady Amid Growing Rate Hike Expectations

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

According to data from CME Group, traders are now betting on a nearly 46% probability of a rate hike as soon as next month, up from 35% just a day earlier.

The bond market had more of a reaction following Kevin Warsh's speech at the annual economic symposium in Jackson Hole, Wyoming. The yield on the two-year Treasury jumped to 4.30% from 4.22%, indicating increasing expectations for a rate hike.

Warsh emphasized that short-term interest rates are the predominant tool for the Fed to control inflation and maintain a strong job market.