US stocks drift lower after expectations rise for the Fed to hike rates to get handle on inflation

Live updates

1. 13d ago

   US stocks drift lower on Fed rate hike expectations

   US stocks are trending lower as investors anticipate the Federal Reserve will raise interest rates to combat high inflation. Market sentiment shifted following a speech by Kevin Warsh at Jackson Hole, viewed as hawkish. CME FedWatch data shows elevated probabilities for upcoming rate hikes. The broader market remains cautious about the Federal Reserve's warning to investors.

   Why it matters

   The Federal Reserve's potential interest rate hikes aim to curb inflation. Investors are closely monitoring the Fed's moves as it may impact the overall economy and stock market. The Fed's actions could influence consumer spending, borrowing costs, and business investments. This uncertainty has contributed to the current market caution.

   What is confirmed

   • CME FedWatch data shows a 45.7% chance of a rate hike in September and an 81% chance in December.
   • The Federal Reserve is expected to raise interest rates to combat high inflation.

   Still unconfirmed

   • Trump presses Fed to lower interest rates, contrary to market expectations.

   What to watch next

   • Federal Reserve interest rate decisions
   • September rate hike probabilities
   • December rate hike probabilities
   Sources used for this update (4)

   1. consent.yahoo.com — Tesla, Inc. (TSLA) Stock Forum & Discussion - Yahoo Finance
   2. www.baltimoresun.com — Business – Baltimore Sun
   3. fnarena.com — The Monday Report – 31 August 2026
   4. www.usatoday.com — Trump presses Fed to lower interest rates. Why it may do the opposite
   confidence 90%
2. 18d ago

   US stocks drift lower as Fed rate hike expectations rise

   US stocks are trending lower as investors anticipate the Federal Reserve will raise interest rates to combat high inflation. Market sentiment shifted following a speech by Kevin Warsh at Jackson Hole, which traders viewed as hawksh. CME FedWatch data shows elevated probabilities for upcoming rate hikes, with a 45.7% chance in September and an 81% chance in December. While some traders responded positively to Warsh and the volatility index hit a year-to-date low, the broader market remains cautious about the Federal Reserve's warning to investors.

   Why it matters

   The Federal Reserve adjusts interest rates to balance economic growth and price stability. Higher rates typically cool inflation but can pressure stock valuations. These moves follow a specific policy signal delivered during the Jackson Hole symposium.

   What is confirmed

   • US stocks are drifting lower amid rising expectations that the Federal Reserve will hike interest rates to control inflation.
   • Kevin Warsh delivered a speech at Jackson Hole.

   Still unconfirmed

   • CME FedWatch probabilities for a September rate hike are 45.7% and December are 81%.

   What to watch next

   • Official Federal Open Market Committee rate decisions in September and December
   • Further commentary from Federal Reserve officials regarding inflation targets
   Sources used for this update (7)

   1. MarketWatch — Stock Market Today: Dow, S&P 500 and Nasdaq set for mixed start ahead of Warsh speech at Jackson Hole
   2. AP News — US stocks drift after expectations rise for the Fed to hike rates to get inflation under control
   3. Seeking Alpha — The Fed Just Delivered A Warning To Markets
   4. CNBC — Stock traders warm up to Warsh as volatility index touches year-to-date low
   5. TradingView — CME FEDWATCH PROBABILITIES OF SEPT, OCT, DEC FOMC RATE HIKE SOMEWHAT ELEVATED AFTER WARSH SPEECH, SO REMARKS SEEN AS HAWKISH; SEPT 45.7%; DEC 81%
   6. www.sun-sentinel.com — US stocks drift lower after expectations rise for the Fed to hike rates to get handle on inflation
   7. www.couriernews.com — Leknessund dedicates Vuelta Stage 7 win to Norway's late king
   confidence 90%