Although the S&P 500 increased on Friday, Wall Street was on track to post a loss for the week due to worries that the Federal Reserve would raise rates more than anticipated.
The Nasdaq increased by 0.4% and the S&P 500 increased by 0.3%. By 75 points, or 0.2%, the Dow Jones Industrial Average increased.
Falling bond yields also helped to ease some of the pressure on technology companies, which had been under pressure lately. After two sessions of losses, Apple increased by more than 1%. Each of Microsoft, Meta Platforms, and Tesla saw a gain of more than 1%.
After a series of positive economic data releases earlier in the week, Bryce Doty, a senior vice president and portfolio manager at Sit Investment Associates, believes that investors are likely taking some solace in the lack of bad news during Friday’s session.
Investors face a Catch-22 when considering the economy, he claimed. “If it appears that we will avoid a hard landing, we receive some positive economic data, and there is a sigh of relief swiftly followed by an increase in expectation of Fed rate hikes,” says the author.
Stocks are still expected to have a poor week even after Friday’s changes. The Nasdaq fell 1.4%, while the Dow and S&P 500 fell 0.8% and 1%, respectively.
Source (CNBC)
