U.S. stocks edged lower after Federal Reserve Chairman Kevin Warsh indicated the central bank's fight against inflation is not yet complete. The Dow Jones Industrial Average slipped 9.45 points, or 0.02%, to 53559.99, while the S&P 500 fell 19.23 points, or 0.25%, to 7711.76. The tech-heavy Nasdaq Composite lost 138.93 points, or 0.52%, to 26402.42.

In his Jackson Hole address, Warsh was more explicit about the Fed's plans than anticipated, noting inflation remains above the 2% target. "The Fed's predominant focus right now should be on prices," he said. Odds of a rate increase in mid-September surged to roughly 58% on Fed funds futures. Boston Fed President Susan Collins, not a voting member, also suggested she would advocate a hike.

The two-year Treasury yield shot up 0.118 percentage point to 4.348%, the largest one-day gain since March. The 10-year yield rose 0.050 point to 4.721%, while the 30-year yield gained 0.016 point to 5.207%, causing a "curve flattening" convergence. Oil futures closed above $83 a barrel, up 51% from 52-week lows, and the dollar rose. Gold tumbled 2.9% to $4478.10 a troy ounce.

Artificial-intelligence leaders slid after Marvell Technology's disappointing earnings, with shares down 10% to $216.62. Nvidia fell 4.6% to $217.55 as investors weighed high valuations. PayPal dropped 13% to $53.66 after Bloomberg reported Stripe and Advent International walked away from a buyout offer. Meanwhile, Chevron and other U.S. energy firms neared deals to invest billions in Venezuela's oil fields.