US stocks drift after expectations rise for the Fed to hike rates to get inflation under control

The briefing

U.S. stocks drifted lower on Friday as investors reacted to Federal Reserve Chairman Kevin Warsh’s remarks at Jackson Hole, Wyoming, signaling a potential interest rate hike to combat high inflation. The two-year Treasury yield jumped following the speech, reflecting growing expectations of a rate increase as early as next month. Meanwhile, strong quarterly results from retailers like Gap and semiconductor firms offered mixed signals across global markets.