The S&P 500 gained 12.74 points, or 0.17%, to 7,650.50 on Friday, lifted by a semiconductor rally even as benchmark Treasury yields topped 5% and crude oil held above $100 a barrel. The Dow posted its biggest weekly percentage decline since March, while the Nasdaq closed above last Friday's finish.
S&P 500 closes higher despite yield surge
Wall Street closed a volatile week on a muted note on Friday as benchmark US Treasury yields topped 5%, while crude prices reversed earlier gains but remained above $100 per barrel. The session capped a week split by restless anticipation ahead of the Federal Reserve's widely expected interest rate hike and its aftermath.
A semiconductor rally boosted the Nasdaq and the S&P 500, but broader weakness pulled the Dow to a lower close. The Dow Jones Industrial Average fell 95.40 points, or 0.18%, to 51,682.64. The Nasdaq Composite gained 104.25 points, or 0.40%, to 26,522.55. Among the S&P 500's 11 major sectors, technology stocks gained the most, while utilities posted the steepest percentage loss.
According to Reuters, Chuck Carlson, chief executive officer of Horizon Investment Services, said: "The market seems to be closely tied to movements in oil prices."
Oil eases from highs but stays above $100
Inflation concerns remained prominent as crude prices settled above $100 a barrel. Prices eased from session highs after China, at the request of Saudi Arabia, asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure. Soaring oil prices have sent diesel prices to record levels, which is likely to translate into broader inflationary pressures affecting farming and shipping costs.
Central banks around the globe have embarked on a policy-tightening cycle to rein in inflation fueled by the Iran war. The Bank of Japan lifted interest rates to a 31-year high, following the Federal Reserve and the European Central Bank, while the Bank of England held rates firm but warned of future hikes.
Fed rate-hike odds climb for October
Financial markets are pricing in a 55.4% probability of another Fed rate hike at the October meeting, up from 42.5% a week earlier and 7.2% a month ago, according to CME's FedWatch tool. Declining issues outnumbered advancers by a 1.78-to-1 ratio on the New York Stock Exchange, which recorded 92 new highs and 346 new lows.
Volume on US exchanges reached 25.29 billion shares, compared with the 16.19 billion average over the last 20 trading days.
Source: Investing.com
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