Dow Jones, S&P 500, Nasdaq: Wall Street reagiert positiv auf Warsh – Paypal-Aktie bricht ein

Wall Street reacted favorably to Fed Chair Kevin Warsh's speech, though gains were modest. The Dow Jones closed 0.4% higher at 53,795 points. The S&P 500 gained around 0.3%, standing at 7,766 points. The tech-heavy Nasdaq increased 0.5% to 26,669 points. The Nasdaq 100, which tracks the 100 largest non-financial companies by market capitalization, also saw a slight increase to 29,695.

Previous Fed Chair meetings have been known for sending significant messages on monetary policy. Given Warsh's communication style, which differs from his predecessors', his remarks were particularly noteworthy. He emphasized that the Fed should respond if inflation does not appear to be moving toward its two percent inflation target, without committing to a specific interest rate change at the upcoming September Fed meeting.

Regardless of the chosen inflation metric, inflation in the US has been well above that target since 2021. Since his inauguration in May, Warsh has consistently stressed his desire to reduce the high inflation. However, according to experts, Warsh has yet to provide a credible strategy for lowering inflation. While stock markets showed little reaction to Warsh's words, short-term US bond yields rose, while long-term bonds yielded slightly lower. This suggests that market participants now view a rate hike in September as somewhat more likely.