Warsh's Hawkish Speech Sends Stocks Plummeting
Federal Reserve Chair Kevin Warsh delivered a hawkish speech at the Jackson Hole conference on August 28, 2026, sending U.S. stocks tumbling after lunch. The odds of a September rate hike rose to a coin toss, with the two-year Treasury yield jumping about 0.1 point in its largest one-day move since June.
The Dow Jones Industrial Average finished flat at 0.01%, while the S&P 500 fell 0.13% and the Nasdaq Composite dropped 0.30%. Half of the 30 Dow stocks rose, with Apple's stock increasing 1.9% after announcing price hikes for its services.
Nvidia's shares fell 4% as investors gave back most of Thursday's post-earnings surge. Semiconductors and growth stocks were hit hard by Warsh's comments on inflation and interest rates, but safe-haven assets like gold and Bitcoin also dropped 2.9%.