As Wall Street closed out a turbulent week, stocks declined on Friday under pressure from a rise in oil prices and rising inflation concerns.
In closing at 4,327.78, the S&P 500 fell by 0.50%. The Dow Jones Industrial Average increased by 0.12%, or 39.15 points, to finish the day at 33,670.29. The technologically significant Nasdaq Composite fell 1.23% and settled at 13,407.23.
After Friday’s earlier release of consumer confidence data, the major indices retreated from their session highs. According to a carefully monitored study from the University of Michigan, consumer mood data declined in October while inflation expectations rose.
In response to concerns that the Israel-Hamas conflict could worsen geopolitical tensions in the Middle East, oil prices increased by more than 6%, and the S&P 500 hit its lowest point of the trading session on Friday. WTI crude posted its largest weekly increase since September 1 this week, rising more than 4%.
Bond yields were another factor that investors watched. At 4.621%, the yield on the 10-year Treasury has decreased by 9 basis points. The yield on the 2-year Treasury was over 2 basis points lower at 5.052%. Prices and yields have an opposite connection.
Rates are still in charge, and that’s mostly what has caused the bounce since last Friday, according to Adam Turnquist, chief technical strategist at LPL Financial. Technically, there are some early indications of a surrender, but we’re still up against an upward trend in longer-duration rates.
Turnquist stated that he anticipates a “difficult and possibly bumpy market as we look ahead for October” barring a decline in the yield on the 10-year Treasury to close to 4.35%.
Source (CNBC)
