US stocks fell sharply following hotter-than-expected Core PCE data on Friday. The two-year Treasury yield neared its highest level since 2007. The S&P 500 notched its worst-performing week in 2023 as investors retreat from risk assets. Loading Something is loading.
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US stocks fell on Friday to close out a losing week, with the S&P 500 notching its worst weekly performance since mid-December.
The Nasdaq Composite and Dow Jones Industrial Average also ended lower as traders digested discouraging January inflation data.
On Friday, core Personal Consumption Expenditures, the US central bank’s preferred inflation measure, increased 0.6% in January, higher than economists’ estimates.
Bond yields jumped as traders bet on more interest rate hikes from the Federal Reserve. The two-year Treasury yield jumped 11 basis points to 4.81%, nearing its highest level since 2007. The 10-year yield rose seven basis points to 3.95%.
Here’s where US indexes stood at the 4 p.m. ET close on Friday:
S&P 500: 3,970.03, down 1.05%Dow Jones Industrial Average: 32,816.92, down 1.02% (336.99 points)Nasdaq Composite: 11,394.94, down 1.69%Here’s what else happened today:
BlackRock says short-term bonds may be an attractive option as the Fed signals a more hawkish monetary policy path ahead.Former Treasury Secretary Larry Summers highlighted four signs that show why the US economy may be inching closer to the cliff edge. Goldman Sachs, Citigroup, and JPMorgan are all reportedly limiting employees’ use of ChatGPT as the Wall Street giants crack down on the AI tool.
These four charts show how Russia’s invasion of Ukraine transformed energy markets.In commodities, bonds and crypto:
West Texas Intermediate crude oil climbed 1.5% to $76.55 per barrel. Brent crude, oil’s international benchmark, rose 1.3% to $83.28.Gold fell 0.5% to $1,818 per ounce.The 10-year Treasury yield gained seven basis points to 3.95%.Bitcoin fell 0.05% to $24,130.33.