Due to investors’ concerns that the Federal Reserve will continue raising rates in the wake of a positive jobs report, stocks dipped on Friday. Nevertheless, the S&P 500 had its fourth weekly rise in five weeks as a result of investor expectations for declining inflation.
The S&P 500 lost 1.04%, falling to 4,136.48. To 12,006.95, the Nasdaq Composite fell 1.59%. Even as Apple shares rose, the Dow Jones Industrial Average fell 127.93 points, or 0.38%, to 33,926.01.
Nevertheless, the Nasdaq Composite and broader market index had a solid week. The S&P 500 finished the week 1.62 percent higher. The Nasdaq Composite rose 3.31%, recording its fifth consecutive week of gains as it outperformed the other major indices. The Dow, though, was the anomaly, falling 0.15%.
Bond yields increased as a result of a stronger-than-anticipated January jobs report, which was taken in by investors. In January, the U.S. economy added 517,000 jobs, well exceeding Dow Jones’ projection of 187,000 new employment. Following the release of the report, the 10-year Treasury yield increased by more than 12 basis points, reaching 3.5%.
Major IT companies’ earnings reports were also analyzed by Wall Street. After the business failed expectations on the top and bottom lines in its most recent quarterly report, Apple shares increased 2.4%, recovering earlier losses. In the meantime, Alphabet, the parent company of Google, dropped 2.8% after weak results. Following the e-commerce giant’s announcement, Amazon’s stock likewise experienced an 8.4% loss, its worst day since April, although it managed to post a 1.1% weekly gain anyway.
Even so, the recent indicators of declining inflation and some well-received remarks made this week by Federal Reserve Chair Jerome Powell, who stated that the disinflationary process has started, gave investors hope.
According to Infrastructure Capital Management CEO Jay Hatfield, “I believe that the market is moving in the direction of our belief that inflation is reducing quickly.” “The models [of the Fed] have shown to be terrible. They missed the upward inflation, and now they are missing the downward inflation.