US Equities Post Modest Gains Despite Hawkish Fed Tone
The US equities market posted modest gains for the week as strong corporate earnings offset a hawkish tone from the Federal Reserve. The S&P 500 Index rose by 0.49%, the Nasdaq Composite Index gained 0.85%, and the Dow Jones Industrial Average advanced by 0.53%. This was a reversal of the previous week's decline.
Nvidia delivered a strong earnings beat, lifting tech sentiment, but new Fed Chair Kevin Warsh struck a hawkish tone at the Jackson Hole symposium, warning that inflation remains 'too high' and further rate increases could be necessary. As a result, short-term Treasury yields jumped, and rate-hike bets rose sharply.
The S&P/ASX 200 had a mixed week as local earnings season reached its crescendo. WiseTech Global reported results that beat on revenue but disappointed on profitability, while Boss Energy achieved its first full-year profit but faced near-term production challenges.