Stock Market Midday, Aug. 28: Stocks Edge Higher on Fed's Clear Inflation Message

Major indexes climbed modestly on Aug. 28 after Federal Reserve Chairman Kevin Warsh's Jackson Hole speech underscored the central bank's commitment to lowering inflation. The S&P 500 added 0.20%, the Nasdaq gained 0.14%, and the Dow rose 0.17%.

Individual stock action diverged sharply. ESTC surged 18% following its earnings report, leading communication services sector gains. MRVL and RBRK both declined despite beating earnings expectations, as semiconductor investors took profits after recent rallies and reassessed positioning ahead of potential rate hikes.

The session highlighted a shift in trader sentiment: earnings beats alone no longer guarantee upside when macro headwinds intensify. Communication services outperformed while industrials and healthcare lagged, reflecting rotation into sectors viewed as more insulated from higher rates.