Stocks sink after Fed chair promises to keep raising interest rates: Federal Reserve Chairman Jerome Powell dashed market hopes that the central bank could slow interest rate hikes in a speech on Friday, triggering the biggest single-day rout in US stocks since June. Addressing the gathering of central bankers in Jackson Hole, Powell said the Fed “must keep at it” until inflation is under control even if it means slower economic growth “for a sustained period.” Stocks — which have been rallying in recent weeks partly on the expectation that the Fed would pivot if the economy slows — immediately fell, with the S&P 500 slipping 3.4% and the tech-heavy Nasdaq 100 dropping more than 4%.

The message: “Powell can’t come right out and say that the Fed is fine walking us right into recession in order to crush inflation, but that is what this messaging unequivocally implies,” one analyst told Bloomberg. “What does this mean for markets? Drastically reduces the chance of a soft landing and the bull case for new highs this year.”

ALSO FROM THE DEPT. OF BAD NEWS- Europe’s energy crisis keeps getting worse: European gas prices spiraled ever higher on Friday, reaching a record EUR 343 per MWh during trading (or more than 1.1k% higher than they were a year ago) and prompting warnings of coming shortages of fertilizers and glass.

SIGN OF THE TIMES- Household energy bills in the UK will rise as much as 80% in October. CNN has the details.

THE CLOSING BELL-

The EGX30 rose 1.8% at Thursday’s close on turnover of EGP 1.54 bn (46.2% above the 90-day average). Foreign investors were net sellers. The index is down 13.9% YTD.

In the green: GB Auto (+9.5%), Madinet Nasr Housing (+9.2%) and Heliopolis Housing (+5.6%).

In the red: Credit Agricole Egypt (-0.5%).