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Update: US Equity Indexes Fall Amid Gains in Crude Oil, Benchmark Treasury Yield

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(Updates with index/price moves and geopolitical news from the first paragraph.)

US equity indexes fell as crude oil jumped amid renewed Washington-Tehran military escalation and the 10-year government bond yield rose to its highest in about a month.

The Nasdaq Composite fell 0.2% to 26,339.3, the S&P 500 retreated 0.3% to 7,686.7, and the Dow Jones Industrial Average slid 0.6% to 53,259.1 ahead of Monday's close. All sectors, except energy and technology, declined. Communication services led decliners, followed by utilities and industrials.

Iran's military has reiterated a warning to the region not to allow the US military to launch attacks from their soil or risk retaliation, Al Jazeera, a Middle Eastern broadcaster, reported.

"As we have demonstrated on the ground, while respecting the national sovereignty of our neighbours, we will never tolerate any form of aggression and will respond with a far heavier retaliation," Al Jazeera cited a military statement.

"Those facilitating US aggression against the Islamic Republic of Iran should know that our powerful armed forces -- the IRGC and the Army, standing shoulder to shoulder -- will decisively target the source of any aggression."

The front-month US West Texas Intermediate crude oil contract advanced 2.7% to $85.69 per barrel, and global benchmark North Sea Brent climbed 2.5% to $90.32 per barrel.

US Treasury yields were mixed in the final leg of trading. The 10-year yield climbed 3.4 basis points to 4.76%, the highest since July-end, while the two-year was steady at 4.35%. The 30-year yield jumped 4.5 basis points to 5.25%.

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US Equity Markets End Lower After Govt Bond Yields Rise Following Fed Chair Warsh's Comments on Inflation

US equity indexes ended lower Friday after government bond yields rose following Federal Reserve Chairman Kevin Warsh's statement that inflation is the more concerning part of the central bank's dual mandate.* "The Fed's price-stability objective of 2%, as measured by the personal consumption expenditures price index, is a firm, fixed target," Warsh said, speaking at the annual Jackson Hole Economic Policy Symposium.* Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, with Tehran agreeing to draw up a list of conditions to restore normal traffic after the Qatari prime minister asked the Iranians to respect freedom of navigation, Reuters reported.* The University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations of no revision in a survey compiled by Bloomberg.* October West Texas Intermediate crude oil fell $0.15 to settle at $83.38 per barrel, while October Brent crude, the global benchmark, was last seen down $0.33 at $89.37.* Workday (WDAY) shares were up about 5.8%, the top gainer on the S&P 500, after it raised the low end of its full-year subscription revenue outlook following fiscal Q2 results above Wall Street's estimates.* Paypal (PYPL) shares were down roughly 13%, the worst performer on the S&P 500, after Bloomberg News reported that Advent and Stripe have backed out of their bid to buy the company.

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Update: US Equity Indexes Slide, Treasury Yields Surge After Fed Chair Warsh Offers Little Monetary Policy Guidance

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes declined while government bond yields jumped after Federal Reserve Chairman Kevin Warsh stressed his focus on the 2% inflation target while offering little guidance on the monetary policy path ahead, as expected.The Nasdaq Composite fell 0.5% to 26,402.4, and the S&P 500 slipped 0.3% to 7,711.7 on Friday. The Dow Jones Industrial Average was down less than 0.1% to 53,559.99.Speaking at the annual Jackson Hole Economic Policy Symposium, Warsh, as expected, did not offer any change to the monetary policy outlook but strongly reaffirmed his commitment to the Fed's mandates while offering little guidance on the timing of rate changes."The Fed's price-stability objective of 2%, as measured by the personal consumption expenditures price index, is a firm, fixed target," Warsh said. "Let's be equally clear about another aspect of the objective: Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed's job to deliver stable prices."US Treasury yields rose. The 10-year yield climbed 5.4 basis points to 4.73%, and the two-year soared 12 basis points to 4.35%.Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, with Tehran agreeing to draw up a list of conditions to restore normal traffic after a Qatari emissary pressed the Iranians to respect freedom of navigation, Reuters reported.With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said.The front-month US West Texas Intermediate crude oil contract slipped 0.1% to $83.44 per barrel, and global benchmark North Sea Brent edged down 0.4% to $89.31 per barrel.In economic news, the University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations of no revision in a survey compiled by Bloomberg. That was still below the final reading of 55.2 in July. Respondents expected a 4% inflation rate over the next year, down from 4.2% in July and 3.3% annual inflation over the next five years, the same as in July.

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Update: US Equity Indexes Fall, Treasury Yields Jump After Warsh Reiterates Inflation Commitment

(Updates with index/price moves and geopolitical news from the first paragraph.)US equity indexes fell, while government bond yields advanced after Federal Reserve Chairman Kevin Warsh said inflation is the more concerning part of the central bank's dual mandate, recommitting to the 2% inflation goal.The Nasdaq Composite fell 0.6% to 26,381.5, and the S&P 500 slipped 0.3% to 7,706.2 ahead of Friday's close. The Dow Jones Industrial Average declined 0.1% to 53,533.2.Speaking at the annual Jackson Hole Economic Policy Symposium, Warsh, as expected, did not offer any change to the monetary policy outlook but strongly reaffirmed his commitment to the Fed's mandates while offering little guidance on the timing of rate changes."The Fed's price-stability objective of 2%, as measured by the personal consumption expenditures price index, is a firm, fixed target," Warsh said. "Let's be equally clear about another aspect of the objective: Price stability is not self-executing, nor is inflation necessarily mean-reverting. It is the Fed's job to deliver stable prices."US Treasury yields rose after midday. The 10-year yield climbed 4.8basis points to 4.72%, and the two-year soared 11.3 basis points to 4.35%.Mediators in the Iran war are stepping up efforts to get the Strait of Hormuz reopened, with Tehran agreeing to draw up a list of conditions to restore normal traffic after a Qatari emissary pressed the Iranians to respect freedom of navigation, Reuters reported. With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said.With the US having disengaged from talks in favour of an economic pressure campaign, the prime minister of Qatar, a US ally, met senior Iranian leaders in Tehran on Thursday, stressing the importance of returning to the pre-war status of open shipping through an international waterway, the news report said.The front-month US West Texas Intermediate crude oil contract slipped 0.4% to $83.16 per barrel, and global benchmark North Sea Brent edged down 0.4% to $89.37 per barrel.In economic news, the University of Michigan consumer sentiment index was revised upward on Friday to 51.7 for August from 51.0 in the preliminary estimate, compared with expectations of no revision in a survey compiled by Bloomberg. That was still below the final reading of 55.2 in July. Respondents expected a 4% inflation rate over the next year, down from 4.2% in July and 3.3% annual inflation over the next five years, the same as in July.

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