CNBC Business News Update - Market Midday: Stocks Mixed, Investors See Possible Rate Hike After Warsh Speech • 8/28/26

Episode Date: August 28, 2026

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CNBC Business News Update Market Midday. I'm Jessica Eddinger. Wall Street enjoyed a bump after the Fed shares morning speech, and now the major averages have returned to mixed this afternoon. You've got the Dow still higher, up 115 points. Salesforce shares leading it higher. They're up almost 4%. Amazon shares also up almost 4% this afternoon,

even Apple's up 2%. The S&P 500 Index is flat. It's up a point, down a point. And the NASDAQ's in the red. It's down 50 points. Most of the chipmakers are in the red. You've got NVIDIA shares down 3% this afternoon. Fed Chair Kevin Warsh with a speech at the Kansas City Fed's symposium in Jackson Hole, Wyoming.

It implied Fed independence. And he also said 100% price stability is the Fed's job. He's worried about inflation. Investors are expecting an interest rate increase. inflation is running above our 2% target. So the Fed's predominant focus right now should be on prices. More on the speech from CNBC senior economics reporter Steve Leesman at the symposium in Wyoming. Says we have work to do if we're not confident inflation is moving to Target. He said inflation of responsibility of the central bank. Recent readings do not tell me underlying

inflation has meaningfully improved any committed to that 2% target. On the economy, said it was in good shape, generally, bullish on AI, and stuck to his guns about providing forward guidance. And another take from former Fed Governor Randall Krosner on CNBC. I think the key thing was that he was very explicit that the interest rate would be the main policy instrument to battle inflation. After the speech, traders raised the probability for a rate increase at the September policy meeting to 55.7%. that's about 20 percentage points higher than yesterday, and this is according to the CME group's Fed Watch. Full coverage of Fed Chair Kevin Warsh's speech at Jackson Hole is on CNBC TV, CNBC.com and on the CNBC app, which you can put on your phone and updates for your ears right here. Seven months ago today, U.S. missiles landed in Iran, beginning the U.S.-Iran war, sending oil prices skyrocketing and pushing prices at the pump for Americans.

above $4 a gallon on average. Iran today is calling for a global pushback against U.S. sanctions. Here's a take from CNBC's David Faber and mad money host Jim Kramer. Oil and gas. And particularly diesel fuel, which the crack spread is the highest. Looks like the highest it's ever been because the Russians are withholding their diesel. Oil is the big sticking. Oil and tariffs are to have an inflationary impact. The war in Iran has obviously sent oil prices up.

They're still up 22% up. Right. Yeah. AAA saying the national average for a gallon of regular today is $4.9. Diesel is up to $5.61. Diesel is used for trucking and agriculture, as well as for trains and ships. And those high costs can trickle down to the U.S. consumer. Marvell shares were tumbling in early trading.

Today, the chipmaker reported quarterly results with only 37% revenue growth. That was underwhelming for investors. Affirm shares were popping today. The Buy Now Pay Later Company reported strong quarterly results as consumers try to move their credit buying away from high-interest credit cards. America Land of the Fee, shopping malls, are now charging for the closest, most convenient parking spots in many places around the U.S.

This is according to USA Today. New in theaters tonight, Focus features romance comedy, finding Emily. Catch-ups animated Coyote v. is Acme and Disney's thriller The Dog Stars. Jessica Eddinger, CNBC.