Stock Market Today: SPY, QQQ Stumble as Warsh Highlights Inflation Woes; Consumer Sentiment Weakens

Both the S&P 500 ETF (SPY) and the Nasdaq 100 ETF (QQQ) closed in the red on Friday. The S&P 500 finished with a 0.23% loss, while the Nasdaq 100 fell 0.65%.

News That Moved the Stock Market Today

• At the annual Jackson Hole Symposium, Fed Chair Kevin Warsh cautioned that the central bank still has "more work to do" if inflation remains elevated. Warsh also noted that recent data suggests "underlying trends" in inflation have yet to show meaningful improvement.
• Following his comments, the odds of a 25-basis-point rate hike at the September Federal Open Market Committee (FOMC) climbed to 57.5% from 35.4% a day ago, according to the CME FedWatch tool. The odds of at least one hike by the end of the year rose to 89.1% from 74.1%.
• Meanwhile, the University of Michigan's Index of Consumer Sentiment fell to 51.7 from 55.2 in July. The reading still exceeded expectations of 51.0. In addition, year-ahead inflation expectations dipped to 4.0% from 4.2%, while long-term inflation expectations held at 3.3% for the third consecutive month.
• Marvell (MRVL) plummeted after its fiscal year 2028 data center revenue guidance of $18 billion failed to impress shareholders. The guidance was raised from $16.5 billion.
• Take-Two Interactive (TTWO) closed in the green after sharing a preview of its GTA 6 video game on Netflix (NFLX). The game's preorders are estimated at around $260 million.
• PayPal (PYPL) faced pressure following reports that Stripe and private-equity firm Advent had dropped their bid to acquire the payment processor for $53 billion.
• Both Nvidia (NVDA) and CrowdStrike (CRWD) finished in the red following earnings-driven rallies on Thursday.