Hawkish Warsh Speech Spurs Rate-Hike Bets, Stocks Slip

Stocks erased early gains Friday after Fed Chair Kevin Warsh's hawkish Jackson Hole speech boosted September rate-hike odds; the S&P 500 closed down 0.26% and the Nasdaq fell 0.50% as growth names led the slide. PayPal crashed 18% after Stripe and Advent abandoned a $50 billion buyout, Marvell fell 6% on a lukewarm outlook, and Elastic jumped 18% on strong results. Nvidia slipped about 3% as traders faded the post-earnings rally, while Evercore ISI raised its Amazon price target on AI-driven shopping.

Written by AI from the sources it cites; it can be wrong — follow any citation to confirm.

10 sources2 min read

Hawkish Warsh speech ignites rate-hike odds; stocks close lower Fed Chair Kevin Warsh's first Jackson Hole address turned a green morning red, with the S&P 500 closing down 0.26% and the Nasdaq Composite falling 0.50% as growth names led the afternoon slide. Investors are repricing the odds of a September rate hike that seemed remote a month ago. 1 2 3 4

PayPal crashes 18% after Stripe and Advent abandon $50B buyout The fintech giant's shares plunged after Stripe and Advent reportedly walked away from a $50 billion acquisition. The collapse leaves PayPal's strategic future in question. 5

Marvell shares tumble 6% as raised outlook fails to impress Marvell beat fiscal Q2 revenue estimates with 37% growth to $2.7 billion, but its raised fiscal 2028 forecast of about $18 billion fell short of elevated expectations tied to a Google partnership worth up to $12.2 billion in shares. The stock, still up 184% this year, fell 6.6%. 6

Elastic shares surge 18% on earnings beat and raised guidance Elastic reported revenue of $478.1 million, up 15.1%, and non-GAAP EPS of $0.70, topping estimates, and lifted its full-year revenue forecast to $2.00 billion. Shares hit a 52-week high. 7

Affirm CEO says high gas prices are squeezing U.S. shoppers Affirm delivered strong fiscal Q4 results and a better-than-expected outlook, but CEO Max Levchin said the $4.09 national average gas price is weighing on U.S. consumers. Shares closed nearly unchanged Friday. 8

Evercore ISI hikes Amazon target to $355 on AI-driven shopping Evercore ISI raised its Amazon price target to $355 from $315, implying roughly 40% upside, citing survey evidence that agentic AI is additive for Amazon Retail. The firm said 57% of Alexa AI users bought a product they were not previously aware of. 9

Nvidia slips 3% to $220 as traders fade post-earnings rally A day after adding hundreds of billions in market value on record fiscal Q2 results, Nvidia fell about 3.3% Friday to $220.38. The pullback extends a familiar pattern of profit-taking around the chipmaker's earnings. 10