Nasdaq 100 Falls As Warsh Revives Rate Hike Bets: Stock Market Today
Nasdaq 100 fell 1% after Fed Chair Kevin Warsh's speech revived rate hike bets, with 60% probability for a September hike. Treasury yields rose, impacting precious metals and Bitcoin. Elastic N.V. gained 17.9% on strong earnings, while PayPal Holdings Inc. dropped 12.2% after a failed acquisition bid.
How this was made
The 30-second read
Why it matters
Higher rate expectations drove bond yields up, pressured rate‑sensitive equities, and triggered crypto declines.
Market read
The speech reshaped rate‑hike expectations, affecting equities, bonds, commodities, and crypto markets.
What to watch
Liquidity conditions and corporate balance sheets may cushion the impact of higher rates.
Background
Fed Chair Kevin Warsh's Jackson Hole remarks signaled persistent inflation concerns, lifting hike odds and prompting a market sell‑off.
Ticker impact
Elastic reported Q1 revenue beat and raised FY2027 EPS guidance.
Potential further rally on earnings momentum.
Revenue up 15% YoY and EPS guidance above consensus.
Solstice Advanced Materials announced termination of an acquisition and a $500M share buyback.
Likely continued buying pressure.
Large buyback size relative to market cap.
Gap posted Q4 results, raised full-year EPS guidance and named new CEO for Old Navy.
May see further upside on improved outlook.
Guidance above consensus and strong earnings beat.
Workday delivered Q2 non‑GAAP EPS beat and raised subscription revenue guidance.
Potential upside continuation.
Guidance exceeds consensus, indicating strong demand.
Affirm posted revenue beat and raised next‑quarter revenue guidance.
Likely modest upside.
Guidance increase modest; market already priced in growth.
Iren reported a quarterly loss wider than expected, missing estimates.
Further downside pressure likely.
Loss miss and shrinking mining revenue.
TeraWulf fell as crypto‑linked miners moved lower after Fed speech.
Continued weakness expected.
Broad crypto sell‑off.
MicroStrategy dropped after broader crypto sell‑off.
Likely further decline.
Correlation with Bitcoin price.
Market effects
Higher rate‑hike expectations pressure rate‑sensitive sectors like tech and crypto.
U.S. equity indices slipped; global markets likely to follow with bond yields rising.
Fed speech influences worldwide risk sentiment and commodity prices.
Counterpoint
If rate‑hike odds are overstated, tech and crypto could rebound sharply.
Key entities
- Fed OfficialKevin Warsh
Fed Chair delivering speech on inflation outlook.
- Regulatory BodyFederal Reserve
U.S. central bank influencing monetary policy.
