As London/European traders had for the exits, the major European indices are closing higher. The gains were led by the France's CAC which rose by 0.98%. That runs in contrast to that indices price action this week. Ironically, that index closed down -0.98% for the week. So the decline was halved in trading here today. A snapshot of the daily indices shows:German DAX: +0.81%France’s CAC 40: +0.98%UK’s FTSE 100: +0.29%Spain’s Ibex: +0.81%Italy’s FTSE MIB: +0.67%Euro Stoxx 50: +0.77%For the trading week, the major indices finished mixed:German DAX: +1.66%France’s CAC 40: -0.98%UK’s FTSE 100: +0.07%Spain’s Ibex: +0.40%Italy’s FTSE MIB: -0.10%In the European debt market, benchmark 10-year yields moved higher across the board, led by France and Italy:Germany: 3.280%, +1.3 basis pointsFrance: 4.127%, +2.9 basis pointsUK: 5.069%, +2.9 basis pointsSpain: 3.732%, +2.5 basis pointsItaly: 4.102%, +2.5 basis pointsin the US market, the major indices are trading mixed after Fed Warshes speech at Jackson Hole. Fed Chair Kevin Warsh struck a hawkish tone at Jackson Hole, offering no explicit guidance on the next interest-rate decision but making clear that inflation remains the Fed’s predominant concern. He described the economy as resilient and strengthening, with solid consumer spending, strong AI-related business investment, historically low unemployment and financial conditions that are difficult to characterize as restrictive. At the same time, PCE inflation remains well above the Fed’s firm 2% target, and recent encouraging readings have not convinced him that underlying inflation is improving sufficiently. Warsh said the Fed must see inflation moving toward its objective clearly and at an adequate pace, signaling a high bar for near-term easing while stressing that he remains committed to policy discipline rather than any predetermined rate decision. The expectations for a September hike is now near 59%.U.S. markets are reacting to Fed Chair Kevin Warsh’s hawkish Jackson Hole message with a clear rise in Treasury yields and growing pressure on interest-rate-sensitive stocks. Warsh’s emphasis on persistent inflation, resilient growth and relatively easy financial conditions is prompting markets to scale back expectations for near-term rate cuts.U.S. stocks are mixed:Dow Jones: 53,689.36, up 115.01 points or 0.21%S&P 500: 7,730.76, virtually unchanged at -0.00%Nasdaq Composite: 26,484.51, down 0.21%Russell 2000: 2,983.32, down 1.03%Nasdaq 100: 29,508.00, down 0.45%The Dow is holding up, but technology shares and small-cap stocks are underperforming. Both groups are more sensitive to higher borrowing costs and reduced expectations for Fed easing.Treasury yields are higher across the curve:2-year: 4.3289%, up 9.7 basis points3-year: 4.3874%, up 9.1 basis points5-year: 4.4683%, up 7.2 basis points7-year: 4.5804%, up 5.8 basis points10-year: 4.712%, up 4.0 basis points20-year: 5.1983%, up 1.2 basis points30-year: 5.1962%, up 0.5 basis pointsThe larger rise at the front end is flattening the yield curve, reflecting a more hawkish reassessment of near-term Fed policy. The market takeaway is that Warsh has set a high bar for easing: inflation must show clearer and more sustained progress before the Fed is likely to consider lowering rates. This article was written by Greg Michalowski at investinglive.com.