Warsh's Hawkish Speech Sinks Stocks, Raises Rate Hike Odds

Federal Reserve Chair Kevin Warsh's hawkish speech at Jackson Hole sent shockwaves through Wall Street, erasing gains from earlier in the day.

The S&P 500 and Nasdaq Composite fell 0.13% and 0.30%, respectively, while the Dow Jones Industrial Average finished flat after a morning surge of around 0.5%

Nvidia's post-earnings rally was short-lived as its stock price dropped 4% following Warsh's comments on inflation and potential rate hikes.

The odds of a September rate increase firmed up to nearly even, from 40%, after the Fed chairman emphasized the need for price stability over growth.