Closing Bell Overtime: 8/28/26

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**Michael Santoli** (1:00)
The bell is bringing an end to the trading day at the NYSC. Glasshouse Brands ringing the bell, and closing out the week here at the NASDAQ is the Center on Rural Innovation. Welcome to Closing Bell Overtime live from Studio B at the NASDAQ market site. I'm Mike Santoli. Melissa Lee is off today. Stocks down slightly following Fed Chairman Kevin Warsh's speech at Jackson Hole. The Dow finished basically flat. The S&P 500 slightly lower by about a quarter of a percent. The NASDAQ, NASDAQ 100 both down bigger as tech gives back some of yesterday's gains. For the week, however, all the major averages holding on to modest gains of about a half a percent aside from the NASDAQ, which was up a bit more than that. Bond yields higher today as Warsh says the Fed may have work to do to fight inflation. Much more on the Warsh speech and the market's reaction to it coming up. Let's begin with today's market movers though. Christina Parchenevales here with those.

**Christina Parchenevales** (1:52)
Well, Mike, today AI conviction cut both ways across the tape and Amazon popped. After Evercore ISI put out a new price target, saying for the first time, it actually sees agentic AI as a positive for the retail business. The firm actually put out a survey. They found 57% of Alexa AI users bought a product they weren't previously aware of. Marvell, going in the other direction, the chip maker raised its revenue outlook for fiscal 2027 and 2028 on stronger AI data center demand, but the stock you can see still fell 10%.
Street is definitely waiting on its October Analyst Day, October 6th, for more on that Google partnership, specifically it's going to be making Google TPUs already baked into guidance through fiscal 2028 Street wasn't expecting that. That's why the stock fell. IREN fell about 16%, now 12%, because I wrote it earlier, on mixed results with better revenue, but thinner profits as Bitcoin mining softened. Still, it sold out of its 2026 AI cloud capacity and landed a BlueOwl-led $2 billion debt deal by NVIDIA's Blackwell Ultra Chips for a new data center in Canada.
In payments, PayPal was the worst performer in the S&P, down about, let's say, 12%, almost 13%, after Bloomberg reported Stripe and Advent walked away from a buyout. Affirm ran in the opposite direction, up about 1% after gross margin. Merchandise volume jumped 36% for the quarter. And the day's top gainer was Workday, up roughly 6%, almost 6%. Let's call them 6% after it raised the low end of its full year software subscription revenue outlook. Happy Friday. I made it.

**Michael Santoli** (3:23)
You as well, Christina. Thank you very much. While Treasury yields rising today, as Fed Chairman Warrish indicated, the Fed is concerned about inflation.

**Kevin Warsh** (3:32)
On the price stability side of our mandate, the numbers are more concerning. The Fed's preferred measure of inflation, the one I talked about earlier, the 12-month change in the PC price index stands at 3.7 percent. The six-month change, a little above four.
The comparable measures from the CPI index are also elevated, as are core measures both of PC and CPI inflation. None of these measures are perfect, but they all tell a similar story. Inflation is running above our 2 percent target.

**Michael Santoli** (4:10)
Let's bring in Rick Santoli now for more on how the markets are interpreting those comments. Obviously, Rick, market found plenty to respond to here.

**Rick Santoli** (4:19)
Yeah, and it's pretty hard to argue with that. Everything he gave are facts. These are facts. These are quantitative details, and he's been consistent. I think the reason the market really responded in a much more aggressive fashion today is the venue. This is a big central bank symposium. This has real girth to it, and I think that's significant. Look at Fed Fund Futures for December. This is a two-week chart, so it's been steadily drifting down till today. Remember, when it goes down, percentages of a hike go up. It had a dramatic drop. That shifted the tone from 36% probability for a set meeting to a whisker under 60%, and that is significant. And I think if it remains solidly above 50% on the Monday before the Wednesday meeting in mid-September, that he will do what the market dictates. That's the relationship I think he's looking for. Now, if you look at what's going on with regard to the 2 10s, this chart is really interesting, and it helps explain why the percentages move so much. Look at the difference between the response on the 2-year versus the response on the 10-year on a percentage basis. Almost 3 times more aggressive on the 2-year, narrowly missing 3% while the 10-year moved 1.2% in terms of a higher yield. Didn't end there. The dollar index definitely followed interest rates. Look at the pop in the dollar index. Maybe something even more significant, the dollar yen. We know that $164 yen is where the significant high was that brought in ultimate intervention. Now, today, first time over $160 on the dollar versus the yen on the pop in interest rates, so it's going to be very interesting to see if the Bank of Japan has any verbiage regarding this in the near future. Mike, back to you.