REUTERS/Brendan McDermid
- US stocks ended slightly higher Friday to close out a losing week.
- Bond yields climbed on the week following the Fed's hawkish signaling Wednesday.
- Policymakers did not adjust interest rates this week, but another hike is on the table before 2024.
US stocks closed lower on Friday to cap off a losing week that saw the Federal Reserve choose to keep interest rates unchanged but maintained a hawkish outlook for the rest of the year.
Major indexes ended their fourth consecutive day in the red Friday. Both oil prices and bond yields surged over the course of the week, with the 10-year Treasury hitting 4.49%, its highest mark since 2007.
The two-year Treasury, meanwhile, also climbed to its highest since 2006.
Policymakers at the central bank signaled that another rate hike remains on the table before 2024, sowing doubt among investors that this year's stock market rally can last. Add in a potential government shutdown, which could weigh on consumer confidence and hurt the economy, and there's even more reason for concern.
"While September is living up to its reputation as being a weak month for stocks, seasonality cannot take all the blame for the selling pressure," Adam Turnquist, chief technical strategist for LPL Financial said. "In addition to a rally in crude oil, a nine-week winning streak in the dollar, and a 'hawkish pause' from the Federal Reserve this week, stocks have had to contend with nearly a 40-basis point surge in 10-year yields this month, which are now trading near 4.50%. Once again, the move in rates has proven to be too much too fast for equity markets to handle."
Here's where US indexes stood as the market closed 4:00 p.m. on Friday:
- S&P 500: 4,320.00, down 0.23%
- Dow Jones Industrial Average: 33,964.31, down 0.31% (-106.38 points)
- Nasdaq Composite: 13,211.81, down 0.09%
Here's what else is going on:
- Dollarization would eliminate Argentina's future inflation risk, a former IMF board member said.
- Investors pulled $19 billion from stocks in the last week, the highest outflow all year.
- 'Shark Tank' investor Kevin O'Leary warned of more pain coming for the economy.
- Falling job openings raise red flags for the stock market.
- Legendary investor Jeremy Grantham called Elon Musk a 'wonderful propagandist.'
In commodities, bonds, and crypto:
- Oil prices climbed, with West Texas Intermediate up 0.9 to $90.46 a barrel. Brent crude, the international benchmark, inched higher 0.45% to $93.72 a barrel.
- Gold edged higher 0.27% to $1,944.90 per ounce.
- The 10-year Treasury yield fell four basis points to 4.432%.
- Bitcoin inched lower 0.07% to $26,573.