Stock Index

U.S. stocks ticked lower as expectations grew that the Federal Reserve will raise interest rates soon to rein in inflation. The two-year Treasury yield jumped to 4.34%. Traders lifted the implied probability of a rate hike as soon as next month to nearly 60% from 35% a day earlier, according to CME Group data.

Fed Chair Warsh said the economy appears to have strengthened and pledged to bring inflation back to the central bank’s 2% target. The S&P 500 rose 0.37%, the Dow added 0.34%, and the Nasdaq 100 gained 0.18%. Chipmakers and AI infrastructure shares lagged, with Marvell Technology sliding 7% after a weaker-than-expected gross-margin outlook. The University of Michigan’s Aug 5-10 year inflation expectations were unchanged at 3.3%, in line with expectations.

U.S. stocks held steady in intraday trading, while bond markets quickly priced in higher odds of a Federal Reserve rate increase. The 2-year Treasury yield jumped to 4.30%, and traders lifted the implied probability of a rate hike next month to 46%. Kevin Warsh’s hawkish remarks prompted investors to reassess the path of interest rates, after his tough stance on bringing inflation under control was seen as potentially leading to action.

U.S. equities were mixed, with the S&P 500 and Dow Jones Industrial Average edging higher while the Nasdaq 100 slipped. Marvell Technology fell more than 7% after forecasting Q3 adjusted gross margin below expectations, dragging chipmakers and AI infrastructure names lower. WTI crude oil dropped more than 1% after Goldman Sachs said Persian Gulf oil exports have recovered to about two-thirds of prewar levels, easing supply concerns. Investors are also focusing on upcoming Q2 earnings releases and remarks from Fed Chair Warsh.

The FTSE 100 slipped 0.35% to 10,839.59, led lower by ex-dividend names including LondonMetric, Glencore and Croda. The FTSE 250 was broadly flat, down 1.65 points. Prudential fell 1.83% after releasing interim results, marking the biggest blue-chip decline driven by earnings.

UK blue-chip stocks fell sharply on Thursday after US inflation data weighed on risk appetite, even as Nvidia reported strong sales. Headline US inflation eased, but the Federal Reserve’s preferred PCE price index remained elevated at 3.7%. The reading fuelled concerns that monetary policy could stay tight for longer, pressuring equities.

Asian stocks rose on Thursday after Nvidia’s strong sales forecast buoyed confidence in the AI rally. South Korea’s Kospi led regional gains, jumping 2.22%, while the MSCI Asia Pacific index added 0.6%. Japan’s Nikkei 225 rose 0.41% and the Topix gained 0.32%. U.S. equity futures also advanced, with Nasdaq 100 futures up 1.2% and S&P 500 futures higher by 0.6%.

U.S. stock index futures rose on Wednesday evening after earnings from Nvidia, Salesforce and Okta came in stronger than expected. Nvidia gained more than 4% after beating Q2 estimates and issuing upbeat guidance, while Salesforce jumped 13% on a revenue beat and Okta surged nearly 20% on demand tied to agentic AI. Dow, Nasdaq 100 and S&P 500 futures were up 0.35%, 0.96% and 0.54%, respectively. Spot indexes ended slightly lower as investors looked ahead to the Jackson Hole meeting and upcoming results from retailers and tech firms.

U.S. stocks finished slightly lower on Aug 26 after a July inflation reading came in hotter than expected. The Dow fell 113.52 points to 53,463.88 as the data added to worries the Federal Reserve could keep tightening. Investors stayed cautious ahead of Nvidia’s quarterly results due later in the day.

Major U.S. stock indexes traded in a narrow range on Wednesday as investors waited for Nvidia’s earnings report. The Fed’s preferred inflation gauge, the July PCE price index, rose 0.2% month over month and 3.7% year over year, slightly above expectations, while core PCE matched forecasts. Rate futures continued to imply about a 60% chance the Federal Reserve keeps rates unchanged next month, according to CME Group’s FedWatch.