Dow Jones, S&P 500, Nasdaq: Dow Jones schließt fast unverändert – Paypal-Aktie bricht ein

Wall Street remained largely unchanged in response to Federal Reserve Chief Kevin Warsh's speech. The Dow Jones index held steady at 53,560 points, while the S&P 500 dropped by 0.2 percent to 7,711 points. The tech-heavy Nasdaq fell by half a percent to 26,402 points. The Nasdaq 100, which includes 100 non-financial companies with the highest market capitalization, lost 0.7 percent to 29,433 points.

This meeting was no stranger to Fed chiefs sending broad signals about monetary policy. Notably, Warsh's communication style differed from that of his predecessors, with relatively few remarks. He emphasized the need for the Fed to respond if inflation does not appear likely to move towards its two percent target, without specifying a precise interest rate change for the upcoming September Fed meeting.

Regardless of the chosen inflation gauge, inflation in the USA has been significantly above the target since 2021. Since taking office in May, Warsh has repeatedly advocated for lowering high inflation. However, experts have yet to see a credible strategy from the Fed chief nominated by President Donald Trump. Initially, stock markets did not react much to Warsh's words, but yields on short-term US bonds rose first, with longer-term bonds yielding slightly lower.

Eventually, all bond yields were up, with two-year notes rising by up to ten basis points. This indicates higher market expectations for interest rates, which in turn burden company loans and can trend down stock prices.