US Stocks Slide as Warsh Warns Inflation Still Elevated

US Federal Reserve Chairman Kevin Warsh struck a hawkish tone on inflation at the central bank's annual Jackson Hole symposium, sending US stocks lower on Friday.

The S&P 500 fell 0.25% to 7,711.76, while the Nasdaq Composite declined 0.52% to 26,402.42 as semiconductor stocks came under pressure.

Warsh said recent CPI and PCE readings had been better than expected but did not provide sufficient evidence that underlying inflation had meaningfully improved, reiterating the Fed's commitment to returning inflation to its 2% target.

Markets responded by increasing expectations for another rate rise, with Fed funds futures putting the probability of a September increase at 57.5%, up sharply from 35.4% a day earlier.