Warsh Says “Hike” Three Times

Welcome to LazyListen. This is The Daily Rip for today. the market action with a quick pulse check on the macro scene, some big movers, and what’s brewing for tomorrow.

Starting with the macro backdrop, Federal Reserve chatter dominated Friday’s headlines. Kevin Warsh, a Fed governor and a Trump appointee, stepped up at the Jackson Hole symposium with a message that caught traders’ ears: rate hikes are still very much on the table. He mentioned “hike” three times early on, though mostly in passing.

The key takeaway? Inflation remains above target, with the 12-month personal consumption expenditures inflation rate at three point seven percent and the six-month rate even higher at four point one percent. Warsh emphasized the Fed’s two percent inflation goal is firm and said they need to see clear, sustained progress before easing off.

That pushed the odds of a September rate hike above fifty percent, up from about thirty-six percent just days ago. The two-year Treasury yield rose over ten basis points, topping four point three percent. Warsh also noted that financial conditions aren’t yet restrictive enough to cool inflation effectively, and short-term interest rates remain the Fed’s primary tool.

S. manage its fiscal challenges. This hawkish tone set the stage for a risk-off day in some sectors.

I. boom hit a snag. The Wall Street Journal reported Nvidia paused some cloud revenue-sharing deals amid partner pushback and antitrust concerns.

While Nvidia said the broader program is still active and evolving, the news rattled investors. Nvidia’s stock dropped about four and a half percent. I.

infrastructure space took a bigger hit: IREN fell twelve and a half percent, APLD dropped nearly eight percent, and BRUN plunged over seventeen percent. -related financing and growth amid rising rates. the company's earnings report added to the caution.

The company’s quarterly revenue declined slightly to about 137 million dollars, with adjusted earnings before interest, taxes, depreciation, and amortization down sharply to 19 million dollars from nearly 60 million the prior quarter. IREN is pivoting away from Bitcoin mining toward cloud infrastructure, but the transition is proving costly. Nvidia had bought 30 million shares of IREN in May at around 70 dollars apiece, so this earnings miss and the cloud deal pause raised questions about the near-term outlook.

Turning to major platform news, PayPal’s stock took a hit after Bloomberg reported that Stripe and Advent International abandoned their pursuit of a buyout. The offer had been around sixty dollars and fifty cents per share in July, but PayPal reportedly found it too low. The stock plunged nearly thirteen percent to about fifty-four dollars, wiping out the takeover premium that had pushed shares up more than forty percent earlier this quarter.

With the deal off the table, investors are left focusing on PayPal’s ongoing turnaround efforts. 5 billion dollars in cost savings, but with no quick acquisition-driven boost, the stock is back to trading on fundamentals. Within PayPal’s business, Commerce Media Solutions continues to shine.

This unit, which connects brands with consumers at the point of purchase across a growing network of partners like CVS and Dick’s Sporting Goods, reported ninety percent revenue growth year-over-year in the second quarter. Its annual revenue run rate now exceeds 125 million dollars, with gross margins improving as partnerships mature. This segment remains a bright spot amid the broader payment platform’s challenges.

On the biotech front, SELLAS Life Sciences, a clinical-stage cancer drug developer, faced pressure after a short-seller report questioned the significance of its Phase 3 REGAL leukemia trial results. The report suggested survivability improvements might not be as meaningful as investors hope. SELLAS stock dropped thirteen percent to about thirteen dollars.

The company is nearing the final analysis for the trial, with 78 of 80 events reported, but the short interest remains high at nearly twenty eight percent of the float. This crowded positioning means the stock could stay volatile until more definitive data arrives. Now for some quick movers grouped by theme: In fintech, SoFi was down nearly six percent after Warsh’s hawkish comments reignited rate hike concerns.

Traders punished this rate-sensitive name, though some bullish voices argue higher rates are already baked into management’s outlook. Precious metals took a hit as well. Silver slid over four percent amid rising Treasury yields and a stronger dollar, with profit-taking dominating the short-term sentiment.

Longer-term bulls remain focused on government deficits and currency debasement as reasons to buy the dip. In patent and litigation chatter, Netlist jumped over eight percent without any new filings. Speculation around potential settlements with Micron and Samsung continues to fuel interest, but no new developments were confirmed.

Looking ahead to tomorrow, keep an eye on inflation data and any fresh Fed commentary. With rate hike odds climbing and inflation still stubbornly above target, markets will be sensitive to any signals on the pace of tightening. I.

infrastructure stocks for follow-through on Nvidia’s deal pause and earnings updates from cloud and fintech players that could shed light on how rising rates are impacting growth investments. I. financing jitters, a failed PayPal buyout, and biotech trial scrutiny all shaping the tape as we head into next week.

Thanks for listening. Catch you next time on LazyListen.