Warsh's Hawkish Pivot Sparks Rate Hike Fears, Markets End Week Down

Fed Chair Kevin Warsh's Jackson Hole debut has the market recalibrating for a September rate hike. Stocks rallied initially on his speech but reversed course to close Friday lower, with the S&P 500 shedding 0.3% to 7,711, the Nasdaq falling 0.5% to 26,402, and the Dow edging down 0.02% to 53,560. The weekly picture was still positive, but the late-session fade signals growing anxiety.

Rate Hike Odds Surge

Warsh's pledge to tame inflation — "We have work to do"...