Video summary
The market closed lower on Friday afternoon as investors digested a hawkish message from Federal Reserve Chairman Jerome Powell at the Jackson Hole symposium. Powell emphasized that inflation is not slowing down and reiterated the Fed's commitment to returning rates to their 2% target, warning that further work remains if meaningful progress is not seen. He clarified that price stability is not self-executing and that it is the central bank's responsibility to deliver it, a stance that has shifted market sentiment toward expecting higher yields and potential interest rate hikes rather than an immediate pivot to easing.
This shift in tone triggered a significant pullback in technology stocks, with the Nasdaq 100 dropping nearly 400 points from its highs to reach session lows. Major semiconductor names like Nvidia and Micron suffered substantial losses, falling by almost 5% and over 6% respectively, while the broader tech sector saw heavy selling pressure. Despite the overall downturn in growth stocks, some large-cap technology giants like Amazon, Google, and Microsoft managed to hold their ground or even gain slightly, showing a degree of resilience within the sector as traders reacted to the new clarity regarding the Fed's inflation-fighting resolve.
Bond markets also reflected this renewed concern over inflation, with yields rising across the curve as the market priced in a higher probability of rate increases. The 10-year Treasury yield climbed by five basis points to 4.72%, while the more Fed-dependent 2-year note jumped by 12 basis points. These higher interest rates strengthened the US dollar and pushed gold prices down significantly, erasing about $150 in value, alongside a decline in the GDX mining index. Consequently, the S&P 500 and other metal-related assets finished the day in the red, marking a tough session for risk-on assets as traders adjusted their expectations based on Powell's strong words regarding the persistence of inflationary pressures.
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T
F N N the tiger
Financial news network
T F [music] N N headline news update
[music]
>> Good afternoon folks Tommy O'Brien
coming to you live from T F N Friday
afternoon 60 minutes left to go in the
trading week the trading day and we got
markets lower after quite the
acceleration early in the session it's
Jackson Hole Friday chairman Powell
speaking at Jackson Hole
He says inflation isn't slowing and he
vows to reach the 2% target
Otherwise they'll have work to do
If they don't get inflation meaningfully
slowing he reiterated that they'll will
return inflation to their 2% goal And he
also benchmarked the PCE As how they
will benchmark well this summer's PCE
and CPI were better than expected then
they're they they do not tell me what
the underlying trends
have meaningfully improved now their
next meeting
September 15th 16th is the the decision
Now
New clarity is what they say okay
Price stability is not self executing
nor is inflation necessarily mean
reverting it's the Fed's job to deliver
stable prices
So he had some strong words that's the
backdrop of the price action this
morning You accelerate up to 77 82 we
back off a bit and we are at 77 15 right
now
You talk about tech stocks you got quite
a pullback here
Nasdaq 100 you head fake lower you catch
an acceleration and just like that we're
almost 400 points off of the highs
you're at session lows right now Nasdaq
off by 8/10% how about Nvidia Down by
nearly 5% from 230 yesterday to 217
right now
Micron off by 6/10% on the flip side of
that.
How about Amazon, Microsoft, Google?
Look at this one. Amazon up by 3.5%
right now. You have Google up 1.7%
but we're coming back for the Tom
O'Brien show, folks.
Excuse me. And when you're talking about
we got the 10-year at 4.72.
All right, we jump over to yields right
now.
Down 14 ticks. So, yeah, the market
thinking, "Hey,
you know what? Maybe we are going to get
a little bit of higher yield and some
hikes." The 10-year right now up by five
basis points at 4.72.
And we got higher across the curve. The
2-year up by 12 basis points.
The 2-year ZT
There's a move for you on the 2-year
heavily Fed dependent. With higher
yields you get dollar strength at 9970
and gold off 150 bucks. GDX off by 4.3%.
Tough day for gold.
We got S&P's
in the red.
Metals in the red. Yields higher. We'll
come right back for the Tom O'Brien
show, folks.
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