Stock Market Recap — Aug 28, 2026
Stocks reverse lower after Warsh lifts September hike odds
Hawkish Fed repricing drove the day’s decisive cross-asset move, reversing US equities lower and supporting the dollar while short-end yields rose. Energy markets stayed stressed by Hormuz disruptions, although after-hours Venezuelan developments improved longer-term supply prospects. Company-specific pressure centered on California utilities and leveraged AI infrastructure. • Fed/Rates: Warsh said inflation had not improved meaningfully and financial conditions were not restrictive. September hike odds rose to 56%-57%, the two-year yield reached 4.35%, the curve flattened, and the S&P 500 reversed lower; gold and Bitcoin also fell. • Energy/Hormuz: Qatar extended LNG force majeure into October, Asian spot LNG more than doubled from prewar levels, and Saudi-to-China tanker earnings hit a record. After hours, Trump said the US had secured majority control of Venezuelan oil resources, while Chevron and GeoPark pursued field agreements. • California Utilities: Lawmakers blocked Newsom’s proposed wildfire-liability shield, sending PG&E down as much as 11.75% and Edison International down as much as 6.4%. • AI/Credit: Pimco warned that heavy AI bond issuance was straining credit markets. Iren fell nearly 13% after taking 9% debt financing for Nvidia chip purchases.
Intraday Updates
- 02:45 ET: French growth stalls while inflation quickens to 2.7% (59 stories)
- 07:44 ET: Qatar extends LNG force majeure as Japan reveals record yen intervention (82 stories)
- 10:44 ET: Warsh boosts hike odds as Gulf tanker rates hit record (100 stories)
- 15:40 ET: Stocks reverse lower after Warsh lifts September hike odds to 57% (85 stories)
- 23:01 ET: US secures Venezuelan oil control as OpenAI ends Cursor partnership (40 stories)