US stocks drift after expectations rise for the Fed to hike rates to get inflation under control

On Friday, US stocks ticked higher, with the S&P 500 adding 0.4% to pull closer to its all-time high set earlier in the month. The upward market movement was driven by growing investor expectations that the Federal Reserve will soon hike interest rates to control the nation's high inflation.

During his first major speech in the role at a key central bankers' meeting in Washington, Federal Reserve Chairman Kevin Warsh emphasized that the central bank's predominant focus and job is to deliver stable prices. Warsh described the current high inflation in the world's largest economy as "elevated" and "concerning," noting that the Fed is not yet done fighting it.

While market participants anticipated near-term interest rate hikes, Warsh did not explicitly state whether interest rates would change in the coming months as inflation remains stubborn.