Market Highlights

Wall Street traders sent short-term yields sharply higher as Federal Reserve Chair Kevin Warsh vowed to bring inflation to the target, boosting bets on a rate hike and stabilizing longer-dated bonds. In his first major speech since taking the helm of the central bank, Warsh appeased investors urging a strong determination in dealing with price pressures after a recent bout of Treasury volatility. Two-year yields climbed 11 basis points to 4.34%. Those on 30-year securities barely budged. The dollar rose. Gold fell. The S&P 500 erased an earlier gain as chipmakers dropped. Global stocks and gold retreated as hawkish comments from Federal Reserve Chair Kevin Warsh fueled bets on an interest-rate hike next month. Oil climbed as Middle East tensions flared.