FX.co ★ US Stocks Pare Gains After Warsh Speech

US stocks turned lower on Friday as tech shares pared the prior session’s gains and Fed Chair Warsh’s warning about persistent inflation strengthened expectations for an interest rate hike. Marvell fell nearly 8%, surrendering part of this month’s advance despite topping earnings forecasts and raising its outlook. Chipmakers and AI infrastructure names broadly held on to their weekly gains after Nvidia said computing demand is set to remain strong over the coming quarters. Meanwhile, in his speech at the Jackson Hole Economic Symposium, Fed Chair Warsh said underlying inflation is not easing and pledged to restrain price growth until it returns to the 2% target. He also indicated that labor market conditions are consistent with full employment, prompting traders to price in a possible rate increase by the central bank next month. Industrial and pharmaceutical stocks also retreated, with Merck and GE Vernova each down more than 1.5%.