AP
- US stocks traded mixed on Friday as investors took in fresh inflation data and corporate earnings.
- The Fed's preferred inflation measure was in line with economists' expectations.
- All three benchmark indexes notched weekly losses, with the S&P 500 sliding into correction territory.
US stocks traded mixed on Friday as investors took in fresh inflation data and more corporate earnings reports.
The Dow Jones Industrial Average slid over 300 points, while the S&P 500 entered correction territory after slipping 10% from its recent peak. All three benchmark indexes notched weekly losses.
The PCE price index, the Fed's preferred inflation measure, rose 0.3% last month and 3.7% year over year, the Commerce Department reported on Friday. Meanwhile, real consumer spending jumped 0.4% last month, hinting at consumer strength that could stoke inflation further.
"Consumers are spending more than they are earning. Adjusted for inflation, consumers increased spending in each of the last three months while real disposable income fell over the same period. Clearly, this can't last much longer," LPL Financial chief economist Jeffrey Roach said in a statement.
Investors also digested the latest wave of corporate earnings this week, with Amazon jumping 6% after a stellar third-quarter earnings report. Other mega-cap tech firms, though, like Alphabet and Meta slid this week.
Here's where US indexes stood at the 4:00 p.m. closing bell on Friday:
- S&P 500: 4,117.37, down 0.48%
- Dow Jones Industrial Average: 32,417.59, down 1.12% (366.71 points)
- Nasdaq Composite: 12,643.01, up 0.38%
Here's what else happened today:
- The S&P 500 will rocket 18% by year-end as the economy stays strong and the Fed ends interest rate hikes, according to Oppenheimer's investment chief.
- The S&P 500 could fall another 5% and test a critical support level, Bank of America warned.
- Treasury Secretary Janet Yellen said surging bond yields are due to the strong economy, not the growing deficit.
- Treasury bonds are yielding the same as the highest dividends paid by S&P 500 firms, Goldman Sachs said.
- JPMorgan CEO Jamie Dimon just trimmed his stake in the lender for the first time.
- Hedge fund billionaire Steve Cohen expects a recession to come and go quickly before a stock market rally.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 2.08% to $84.94 a barrel. Brent crude, the international benchmark, slipped 0.62% to $88.65 a barrel.
- Gold climbed 1.08% to $2,006.69 per ounce.
- The 10-year Treasury yield traded flat around 4.841%.
- Bitcoin slipped 0.87% to $33,657.