Closing Bell: U.S. Stocks Tumble on Warsh Speech Inflation Worries

U.S. Stocks fell modestly on Friday but still had a winning week after Federal Reserve Chairman Kevin Warsh conveyed some worry about inflation trends.  

The S&P 500 (SPX) was down 0.25%, while the Nasdaq-100 (NDX) fell 0.7%. The Dow Jones Industrial Average ($DJI) was down a fractional 0.02% on Friday, while the small-cap Russell 2000 (RUT) fell 1.39%. 

Yields moved higher and pressured stocks after Fed Chair Kevin Warsh gave a hawkish speech. The 10-Year moved up 5 basis points to 4.72%, and the dollar also rose. At the central bank’s annual symposium in Jackson Hole, Wyoming, Warsh said, “While this summer’s PCE and CPI readings were better than expected, they do not tell me that underlying trends have meaningfully improved.”  He also said, “We must be confident that underlying inflation is moving to our objective, clearly and at sufficient speed. Otherwise, we have work to do. That’s our job ... our mandate ... and our charge to keep.” 

For the week, the SPX was up 0.5% while the tech-heavy NDX was higher by 0.4%. The Dow Industrial Index rose 0.5% for the week, and the small-cap RUT actually fell 1.5. 

Here are three things to watch from Friday's markets: 

• Marvell Technology (MRVL) shares fell more than 10% Friday after the company provided a fiscal 2028 outlook that underwhelmed investors, despite reporting second-quarter revenue that beat analyst projections. See Buying the Dip on MRVL Post-Earnings Drop | Trading 360 

 • Apple (AAPL) shares rose 1.6% after it increased the monthly price of Apple TV, its streaming service, to $14.99, or $119 per year, from $12.99 per month, or $99 per year previously, according to reports. See Example Trades: AAPL, DKS, UAL | Fast Market 

 • PayPal (PYPL) shares sank 12.7% on a Bloomberg report that a consortium of Stripe and private equity firm Advent had abandoned a $53 billion takeover pursuit. See How Fintech, M&A Activity Drives Uptick in Stablecoin Usage and Cash's Place in U.S. Economy Growing its Reliance on Paperless Payments 

Angrej Singh contributed to this article

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