Stock Market Update
28-Aug-26 11:40 ET
Mega-cap strength offsetting hawkish Fed commentary
Dow +146.27
at 53715.71,
Nasdaq +97.33
at 26659.73,
S&P +27.81
at 7758.80
[BRIEFING.COM] The major averages remain on track for a higher finish to the week, with the S&P 500 (+0.4%), Nasdaq Composite (+0.4%), and DJIA (+0.4%) sitting near session highs just before midday.
The major averages spent the first hour or so of the session little changed as investors digested commentary from Fed Chair Kevin Warsh at the Jackson Hole symposium. Mr. Warsh confirmed that the Fed's attention will be on price stability as inflation remains above target. Following Mr. Warsh's address, the CME FedWatch tool now assigns a 57.5% probability to a 25-basis-point rate hike at the September FOMC meeting, up from 35.4% yesterday.
The shift in expectations caused a spike in shorter-dated Treasury yields, with the 2-year note yield up nine basis points to 4.32%.
Unsurprisingly, the Russell 2000 (-0.5%) and S&P Mid Cap 400 (-0.5%) are lower. However, the major averages continue to hold decent gains, which is largely a result of strength in non-semiconductor mega-cap stocks, which lagged amid yesterday's earnings-driven tech gains. The Vanguard Mega Cap Growth ETF is up 0.6%.
