Business

The bond market prepares for a hike to interest rates, while US stocks drift lower

Options trader Matthew Hefter works on the floor of the New York Stock Exchange, Thursday, Aug. 27, 2026, in New York. (AP Photo/Yuki Iwamura) Fed Chair Kevin Warsh arrives at the annual Jackson Hole Economic Policy Symposium on Friday, Aug. 28, 2026, in Moran, Wyo.…

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Options trader Matthew Hefter works on the floor of the New York Stock Exchange, Thursday, Aug. 27, 2026, in New York. (AP Photo/Yuki Iwamura)

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Fed Chair Kevin Warsh arrives at the annual Jackson Hole Economic Policy Symposium on Friday, Aug. 28, 2026, in Moran, Wyo. (AP Photo/Amber Baesler)

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Specialist James Denaro works on the floor of the New York Stock Exchange, Thursday, Aug. 27, 2026, in New York. (AP Photo/Yuki Iwamura)

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Currency traders work at the foreign exchange dealing room of the Hana Bank headquarters in Seoul, South Korea, Friday, Aug. 28, 2026. (AP Photo/Ahn Young-joon)

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NEW YORK (AP) — The bond market swung Friday as investors built bets that the Federal Reserve may hike interest rates soon to get the nation’s high inflation under control. U.S. stocks, meanwhile, dipped but not by much after economists said a speech by Chairman Kevin Warsh helped strengthen faith that the Fed will do what’s needed to bring inflation down, even if it causes pain for the economy in the short term.

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The S&P 500 fell 0.2% after flipping between modest gains and losses through the morning. The Dow Jones Industrial Average dipped 9 points, or less than 0.1%, and the Nasdaq composite…

Original source: https://apnews.com/business

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