Warsh Warning Sends US Stocks Reversing Course
US stocks experienced a reversal of fortunes on Friday as tech shares retreated from their previous day's gains. This shift was largely attributed to comments made by Fed Chair Warsh, who emphasized the need to combat high inflation and signaled that the labor market is consistent with full employment.
The warning signs were evident in the performance of Marvell, which declined nearly 8% after beating earnings estimates and raising its outlook. Despite this setback, chip producers and companies involved in AI infrastructure managed to maintain their weekly gains, thanks in part to Nvidia's observation that compute demand continues to surge through the next quarters.
However, not all sectors were immune to the market's volatility. Industrial stocks and pharmaceuticals pulled back, with Merck and GE Vernova experiencing declines of over 1.5% each.