Global markets navigated hawkish Fed commentary and renewed geopolitical tensions. US stocks opened flat, awaiting Fed Chair Warsh's Jackson Hole speech, with the Nasdaq 100 remaining range-bound. Consumer sentiment edged higher in the US, but Chicago PMI fell short of expectations, indicating contraction.
Fed Chair Warsh delivered a hawkish tone at Jackson Hole, signaling the Fed may need to raise rates if inflation persists. This shifted September Fed decision odds, with rate hike probability increasing. Gold prices fell following Warsh's comments, while US yields drifted higher ahead of his address.
Oil prices slipped despite simmering Iran tensions and a drone attack on a Russian refinery. Reports of Venezuela weighing an OPEC exit and a potential "massive" deal for its oil fields with Trump contributed to supply outlook shifts. VLCC rates surged to $650,000 a day amid the Iran war.
Employment data saw non-farm payrolls benchmark revisions trim 79K jobs, while Brazil created fewer formal jobs than expected. Canada's Q2 GDP recovered sharply. AI stocks experienced a broad rout, sparked by China's DeepSeek, despite Marvell's strong forecast.
Watch for continued Fed rhetoric and evolving geopolitical dynamics in energy markets.