US stocks down at close after Fed's Warsh signals possible rate hike

The US stock markets closed the week in negative territory following Fed Chairman Kevin Warsh's statement signaling a possible rate hike due to persistently high inflation.

The Dow Jones Industrial Average lost 0.02%, or 9.45 points, to close at 53,559.99.

The S&P 500 dropped 0.25%, or 19.23 points, to finish the week at 7,711.76, while the Nasdaq Composite fell 0.52%, or 138.93 points, to 26,402.42.

The Volatility Index (VIX), often referred to as the market's "fear index," declined 0.55% to 14.43.

Speaking at the Jackson Hole Economic Policy Symposium, Fed Chairman Warsh signaled that additional monetary policy steps may be needed if inflation does not fall to the target level.

He said: "While this summer's personal consumption expenditures and consumer prices index readings were better than expected, they do not tell me that underlying trends have meaningfully improved."

European markets

European stocks posted gains on Friday as the pan-European Stoxx Europe 600 index increased 0.51% to close at 655.16 points.

The UK's FTSE 100 gained 0.29% to 10,824.26, while Germany's DAX 40 rose 0.77% to 26,569.99 points.

France's CAC 40 went up 0.98% to 8,401.18, Italy's FTSE MIB 30 increased 0.67% to 52,616.12 points, and Spain's IBEX 35 was up 0.81% to 20,041.90 points.