Tech Stocks Plunge as Hawkish Fed Signals Rate Hikes

PUBLISHED Aug 28, 2026, 3:37 PM ET

Federal Reserve Chair Kevin Warsh delivered a hawkish speech at Jackson Hole, signaling potential interest rate hikes to combat stubborn inflation, causing technology stocks to plunge Friday. The Philadelphia Semiconductor Index dropped 3.6 percent, while the Technology Select Sector SPDR ETF fell 1.5 percent and the S&P Semiconductor ETF declined 3.9 percent. Warsh stated that current interest rates lack economic restriction and that the central bank must act if inflation fails to reach the 2 percent target. He highlighted that 54 percent of goods and services experienced price increases of 3 percent or higher over the past year. Following the remarks, two-year Treasury yields rose to 4.30 percent as investors priced in upcoming rate hikes. The Federal Open Market Committee meeting is scheduled for September 15 to 16, with markets anticipating a December rate increase. The sensitive technology sector, heavily reliant on capital-intensive investments and future earnings projections, led broad market losses.

By Emily Rhodes | JQJO News

Media Bias

Articles Published:: 31
Right Leaning:: 2
Left Leaning:: 5
Neutral:: 24

Explain Framing

Left: Emphasizes economic risks, consumer impacts, and regulatory protection needs. Center: Focuses strictly on market data, Treasury yields, and indices. Right: Highlights inflation burdens, regulatory restraint, and business cost pressures.