US Stocks Close Lower After Warsh Speech | Closing Bell

Watch on YouTube ↗  |  August 28, 2026 at 20:25  |  9:13  |  Bloomberg Markets
Speakers
Romaine Bostick — Anchor, Bloomberg
Max Levchin — CEO, Affirm
Lisa Mateo — Reporter, Bloomberg
Tim Stenovec — Anchor/Co-Host, Bloomberg TV & Radio

Summary

The video covers the U.S. market close after a hawkish-sounding Kevin Warsh speech. Front-end Treasury yields jumped, flattening the curve and pressuring rate-sensitive small caps, while the dollar firmed and gold's debasement bid reversed. Stock movers included gains in Gap, Affirm, DraftKings, and Flutter, and declines in PayPal, Nvidia, and Ulta.

  • Bond market repriced front-end rates higher; 2-year yield up 12bp, 30-year up only 2bp.
  • Curve flattened as traders priced a Fed hike sooner rather than later.
  • Russell 2000 sold off more than S&P 500 on rate sensitivity.
  • Bloomberg Dollar Spot Index firmed and the gold/dollar debasement trade reversed.
  • Gap rallied on Old Navy leadership and earnings; PayPal fell on the broken buyout interest.
  • DraftKings and Flutter rose after Kalshi's legal setback; Affirm rose on its revenue forecast and healthy consumer.
  • Nvidia and Ulta declined; Nvidia's dip was called not systemic, while Ulta margins were hit by promotions.
  • Fed decision dates highlighted: September 16, October 28, and December 9.
Ideas
Romaine Bostick Anchor, Bloomberg 0:00
Front-end yields up; curve flattens.
The bond market is reacting to Kevin Warsh's speech by repricing the front end: the 2-year yield is up about 12 basis points while the 30-year yield is up only about 2 basis points. The result is a flattening yield curve as traders anticipate the next Fed move will be a hike, likely sooner rather than later.
U.S. 2-Year Treasury Yield HIGH
Romaine Bostick Anchor, Bloomberg 0:00
Front-end yields up; curve flattens.
The bond market is reacting to Kevin Warsh's speech by repricing the front end: the 2-year yield is up about 12 basis points while the 30-year yield is up only about 2 basis points. The result is a flattening yield curve as traders anticipate the next Fed move will be a hike, likely sooner rather than later.
U.S. 2s30s Yield Curve Spread HIGH
Romaine Bostick Anchor, Bloomberg 0:39
Small caps underperform on rate sensitivity.
The hawkish rates repricing has a clear equity read-through: rate-sensitive small caps are selling off hard. The Russell 2000 is down about 1.4%, a much bigger divergence than the S&P 500, as higher front-end rates hit interest-rate-sensitive stocks.
IWM MED
Romaine Bostick Anchor, Bloomberg 0:51
Dollar rebounds; gold debasement reverses.
The Bloomberg Dollar Spot Index is up about 0.3% and the prior debasement trade—the bid into gold and the drop in the dollar—is being reversed today, suggesting a near-term reversal of dollar weakness and gold strength.
Bloomberg Dollar Spot Index MED
Romaine Bostick Anchor, Bloomberg 0:51
Dollar rebounds; gold debasement reverses.
The Bloomberg Dollar Spot Index is up about 0.3% and the prior debasement trade—the bid into gold and the drop in the dollar—is being reversed today, suggesting a near-term reversal of dollar weakness and gold strength.
GLD MED
Max Levchin CEO, Affirm 3:27
Affirm revenue beat; consumers healthy.
Affirm reported a first-quarter revenue forecast that beat the average analyst estimate, and CEO Max Levchin said the 'Affirm consumer' remains healthy. The stock briefly rose as much as 17% and hit its highest intraday level since September 2025.
AFRM MED
Lisa Mateo Reporter, Bloomberg 4:04
Kalshi setback lifts sportsbook stocks.
DraftKings and Flutter rallied after Kalshi suffered a setback in a U.S. appeals court. That is a positive catalyst for traditional sportsbooks, which have been beaten up as bettors moved to prediction-market rivals like Polymarket and Kalshi.
DKNG FLUTTER MED
Lisa Mateo Reporter, Bloomberg 5:04
PayPal buyout fades; competitive struggles remain.
PayPal fell about 12% on reports that the Advent/Stripe group will not pursue a $50 billion buyout. The company is struggling with modernization and payment technology, while Apple and Alphabet have seized market share; a new CEO is trying to set new financial goals.
PYPL MED
Lisa Mateo Reporter, Bloomberg 6:33
Ulta margins squeezed by promotions.
Ulta shares fell about 4% as higher discounts and premium promotions weighed on margins, signaling promotional pressure is hurting profitability.
ULTA MED
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This Bloomberg Markets video, published August 28, 2026, features Romaine Bostick, Max Levchin, Lisa Mateo discussing U.S. 2-Year Treasury Yield, U.S. 2s30s Yield Curve Spread, IWM, Bloomberg Dollar Spot Index, GLD, AFRM, DKNG, FLUTTER, PYPL, ULTA. 9 trade ideas extracted by AI with direction and confidence scoring.

Speakers: Romaine Bostick, Max Levchin, Lisa Mateo  · Tickers: U.S. 2-Year Treasury Yield, U.S. 2s30s Yield Curve Spread, IWM, Bloomberg Dollar Spot Index, GLD, AFRM, DKNG, FLUTTER, PYPL, ULTA