US stocks ended mixed on Friday as investors wrapped up a volatile week marked by the Federal Reserve’s first interest-rate hike in three years, rising Treasury yields and elevated oil prices.
The Dow Jones Industrial Average fell 114.74 points, or 0.22%, to 51,663.30, while the S&P 500 gained 11.53 points, or 0.12%, to 7,647.19.
The Nasdaq Composite advanced 92.72 points, or 0.35%, to 26,511.01.
The moves came as investors assessed the potential impact of a higher-for-longer interest-rate environment on equities and fixed-income markets. A semiconductor rally helped limit the pressure on broader US equities.
Treasury yields remain elevated
Treasury yields moved higher on Friday, adding to pressure on stocks.
The 10-year Treasury yield briefly climbed back above 5% after retreating on Thursday and was last up more than five basis points at 4.998%.
The benchmark yield had already risen above 5% earlier in the week, reaching its highest level since July 2007.
The move has kept inflation and interest-rate expectations in focus as investors assess the Federal Reserve’s next steps.
The Fed raised its benchmark interest rate by 25 basis points this week, taking the target range to 3.75%-4%.
Markets are now pricing in more than a 50% probability of another rate increase at the central bank’s October meeting, up from 42.5% a week earlier and 7.2% a month ago, according to the CME FedWatch tool.
The prospect of additional rate increases could keep pressure on Treasury yields in the coming months.
Oil remains above $100 a barrel
Oil prices retreated on Friday but remained above $100 a barrel, keeping inflation concerns elevated.
West Texas Intermediate crude futures fell 1.58% to settle at $100.30 a barrel, while Brent crude futures declined 0.91% to close at $103.87.
Crude prices eased from session highs after China, at Saudi Arabia’s request, asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure.
However, oil remained at levels that could add to broader inflationary pressures.
Soaring oil prices have also pushed US diesel prices to record levels, potentially increasing costs across farming and shipping.
The combination of elevated oil prices and rising bond yields has added to concerns about the outlook for inflation and monetary policy.
Dow posts third weekly decline
Friday’s session ended the major indices on a mixed week. The Dow was down nearly 2% for the week, posting a third consecutive weekly decline and its worst weekly performance since March.
The S&P 500 was down 0.3% week to date, while the Nasdaq was up 0.3%, making it the only major index on track for a weekly gain.
Investors also monitored company-specific developments.
Berkshire Hathaway announced that Warren Buffett will step down as chairman and become chairman emeritus, nine months after handing the CEO role to Greg Abel.
Xenon Pharmaceuticals fell after temporarily pausing enrollment in clinical studies of an experimental drug following reports of side effects.
Cryptocurrency-linked stocks including Coinbase, Strategy and Robinhood surged as Bitcoin prices jumped.
The quarterly expiry of stock and index derivatives, known as triple witching, also contributed to late-session volatility.
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