Warsh's Hawkish Comments Send Equities and Dollar Soaring

Equities rose across the globe following Federal Reserve Chair Kevin Warsh's speech at the annual economic symposium in Jackson Hole. The MSCI global equities gauge increased by 0.24% to 1,157.46 points, while the Dow Jones Industrial Average rose 162.95 points or 0.30% to 53,732.39.

The U.S. dollar also gained strength after Warsh's comments, which led traders to increase bets for an interest rate hike at the September meeting. According to CME Group's FedWatch tool, the probability of a rate hike rose to 55.7% from 35.4% on Thursday.

The 2-year note yield climbed by 7.84 basis points to 4.312%, while the 10-year bond yield increased by 2.01 basis points to 4.692%. This indicates that traders are pricing in more interest rate hikes following Warsh's speech.