Warsh's Warning Weighs on Equities as Markets Track Rates, Commodities

Markets were affected by Kevin Warsh's recent address at Jackson Hole, where he reiterated the Federal Reserve's commitment to a 2% inflation target and warned that persistent inflation could lead to a rate rise. This warning weighed on equities, leading to a sell-off in US markets on Friday.

The Nasdaq outperformed after Nvidia's earnings supported the AI theme, while European indices were mixed. The Shanghai Composite, Japan's Nikkei, and Australia's All-Ordinaries posted gains in Asia-Pacific.

Precious metals and Treasuries ended near their lows, but a bullish divergence between 10-year T-Notes and 30-year T-Bonds remained intact. Crypto was flat after the prior week's advance, and crude oil finished lower but off its lows.