S&P and Nasdaq Slip as Fed Chair Warsh Reaffirms Inflation Fight

Bullish Gator

Markets turned cautious and closed lower after Fed Chair Kevin Warsh stressed inflation-fighting, raising chances of a rate hike.

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What stands out

Kevin Warsh's blunt reminder that the Federal Reserve (Fed) is still focused on fighting inflation ended the S&P and Nasdaq's rally, and Reuters captured investors shifting to cautious mode as a rate hike looked more likely. For Nasdaq, Inc. (NDAQ), this is not abstract, the exchange's economics depend on listings, trading volumes, and volatility, which can be squeezed by higher rates and a slowing IPO market. The video matters because central bank language often presages stretches when solid corporate growth runs into thinner market breadth, forcing a split between fundamental momentum and near-term price action.