US stocks fell during the week, the S&P 500 lost more than 1.27% and the Nasdaq 3.86%, while the Dow Jones fell 0.28%.
The market moves came as investors reacted to a shifting tone by the Federal Reserve, indicating that it will act more aggressively to fight inflation.
In the weekend’s session, the Dow Jones rose 137.55 points, or 0.4%, to 34,721.12 points, the Standard & Poor’s fell 0.27% to 4488.28 points, and the Nasdaq fell 1.34% to 13711.00 points.
The yield on the benchmark US 10-year Treasury bond rose to a three-year high of 2.73%, which helped lift the Standard & Poor’s Banking Sector Index, which fell on Thursday to its lowest level in 13 months.
Shares of JPMorgan Chase, Bank of America, Citigroup and Goldman Sachs Group rose.
Comments by Lyle Brainard and Vital Knowledge’s Adam Crisavoli wrote: “We still believe that nothing really significant has happened this week except for Fed Governor Lyle Brainard’s comments, Tuesday morning, and the past several days have been a job to digest her words.”
Technology stocks led losses on Friday; Investors dumped higher-risk stocks in anticipation of higher interest rates, which would limit the group’s profit growth in the future. Chip makers such as Nvidia fell 4.5% and Micron 1.4%, the two companies struggling amid supply chain shortages and fears of an imminent recession, while Tesla, Alphabet and Apple shares fell 3%, 1.9% and 1.2%.
Shares of Robinhood, also Friday, fell by nearly 7% after Goldman Sachs lowered the rating of its trading application for sale from neutral.
The Federal Reserve, on the other hand, rebounded in the health care and consumer goods sectors during the week as investors worried about a slowing economy, which is heading towards stocks with stable earnings.
Meanwhile, financial sector companies such as JPMorgan and American Express rebounded, paring some of the previous week’s losses.
The Federal Reserve released minutes from its March meeting on Wednesday which revealed that policy makers plan to reduce their bond holdings by a consensus amount of about $95 billion. The central bank is also considering raising interest rates by 50 basis points in future meetings.
Brainard’s comments earlier this week suggested the central bank could start reducing its balance sheet “at a rapid pace” as soon as May.
Treasuries yield A shift in the Fed’s moves caused interest rates to rise; The 10-year Treasury yield hit a new three-year high on Friday; It rose above 2.7%. The price ended last week at 2.38% and started the year at 1.63%.
Unemployment benefit During the week, claims for unemployment benefits in the United States fell to the lowest level since 1968 last week, in a strong sign of improving labor market conditions in the world’s largest economy.
European stocks The European Leading Stock Index, slightly higher during the week, closed higher on Friday, ending a volatile trading week; Investors assessed the pace of the Federal Reserve’s monetary tightening plans and the news from Ukraine.
The pan-European Stoxx 600 index closed 1.2% higher on Friday, with oil and gas stocks adding 3.2% to lead the gains; Almost all major sectors and stock exchanges entered positive territory.
The past five days have been marked by volatility; As traders digested the details of the Fed’s plans to tighten its balance sheet and raise interest rates to contain hyperinflation.
Oil fluctuates and loses 1.5% in a week
Oil prices rose 2%, on Friday, but recorded their second consecutive weekly decline, after countries announced their intention to withdraw quantities of crude oil from their strategic stocks.
Brent crude futures rose at the close of $2.20, or 2.19 percent, to $102.78 a barrel.
US West Texas Intermediate crude futures rose $2.23 to $98.26.
Brent crude fell 1.5 over the course of the week, while West Texas Intermediate crude fell 1 percent. Over the past weeks, the two benchmark crudes have been subject to the most volatility since June 2020. Member countries of the International Energy Agency will withdraw 60 million barrels over the next six months, with the United States matching this amount within the framework of what it announced in March of its withdrawal of 180 million barrels from its strategic stock. (Archyde.com)