Europe's major equity indices finished the day in positive territory as London and European traders headed for the exits. Gains were led by France's CAC 40, which rose 0.98%. That performance contrasts with the index's price action this week: the CAC 40 closed down 0.98% for the week, meaning Friday's advance halved the weekly decline.

A snapshot of the daily closing moves shows:

• German DAX: +0.81%
• France's CAC 40: +0.98%
• UK's FTSE 100: +0.29%
• Spain's Ibex: +0.81%
• Italy's FTSE MIB: +0.67%
• Euro Stoxx 50: +0.77%

For the trading week as a whole, the major European benchmarks finished mixed:

• German DAX: +1.66%
• France's CAC 40: -0.98%
• UK's FTSE 100: +0.07%
• Spain's Ibex: +0.40%
• Italy's FTSE MIB: -0.10%

In the European debt market, benchmark 10-year yields moved higher across the board, led by France and Italy:

• Germany: 3.280%, +1.3 basis points
• France: 4.127%, +2.9 basis points
• UK: 5.069%, +2.9 basis points
• Spain: 3.732%, +2.5 basis points
• Italy: 4.102%, +2.5 basis points

Across the Atlantic, U.S. markets are trading mixed following Fed Chair Kevin Warsh's speech at Jackson Hole. The annual Federal Reserve symposium in Jackson Hole, Wyoming, has long served as a venue where Fed chairs signal the direction of monetary policy, and markets parse the remarks closely for clues about the rate path ahead. Warsh struck a hawkish tone, offering no explicit guidance on the next interest-rate decision but making clear that inflation remains the Fed's predominant concern. He described the economy as resilient and strengthening, citing solid consumer spending, strong AI-related business investment, historically low unemployment, and financial conditions that are difficult to characterize as restrictive. At the same time, PCE inflation remains well above the Fed's firm 2% target, and recent encouraging readings have not convinced him that underlying inflation is improving sufficiently. Warsh said the Fed must see inflation moving toward its objective clearly and at an adequate pace, signaling a high bar for near-term easing while stressing that he remains committed to policy discipline rather than any predetermined rate decision. Expectations for a September hike are now near 59%.

U.S. markets are reacting to the hawkish Jackson Hole message with a clear rise in Treasury yields and growing pressure on interest-rate-sensitive stocks. Warsh's emphasis on persistent inflation, resilient growth, and relatively easy financial conditions is prompting markets to scale back expectations for near-term rate cuts.

U.S. stocks are mixed:

• Dow Jones: 53,689.36, up 115.01 points or 0.21%
• S&P 500: 7,730.76, virtually unchanged at -0.00%
• Nasdaq Composite: 26,484.51, down 0.21%
• Russell 2000: 2,983.32, down 1.03%
• Nasdaq 100: 29,508.00, down 0.45%

The Dow is holding up, but technology shares and small-cap stocks are underperforming. Both groups are more sensitive to higher borrowing costs and reduced expectations for Fed easing: technology companies often carry valuations that rely on longer-dated cash flows, while smaller firms tend to depend more heavily on floating-rate and credit-sensitive financing.

Treasury yields are higher across the curve:

• 2-year: 4.3289%, up 9.7 basis points
• 3-year: 4.3874%, up 9.1 basis points
• 5-year: 4.4683%, up 7.2 basis points
• 7-year: 4.5804%, up 5.8 basis points
• 10-year: 4.712%, up 4.0 basis points
• 20-year: 5.1983%, up 1.2 basis points
• 30-year: 5.1962%, up 0.5 basis points

The larger rise at the front end is flattening the yield curve, a pattern that typically accompanies a repricing of expected near-term Fed policy rather than changes in long-run inflation expectations, which are more closely tied to long-dated maturities. The market takeaway is that Warsh has set a high bar for easing: inflation must show clearer and more sustained progress before the Fed is likely to consider lowering rates. The next scheduled Fed policy decision and the accompanying Summary of Economic Projections will offer the following checkpoints for whether that bar has been met.