por admin » Vie Feb 17, 2023 2:46 pm
Stocks slip as rates rise to their highest levels in three months: Live updates
Carmen Reinicke
Hakyung Kim
The stock market is a little too optimistic about where we go from here, says JPM's Meera PanditWATCH NOW
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The stock market is a little too optimistic about where we go from here, says JPM’s Meera Pandit
U.S. stocks slipped on Friday as stubbornly high inflation and a rebound in rates continue to weigh on investor sentiment.
The S&P 500 shed 0.57%, and the Nasdaq Composite fell 1%. The Dow Jones Industrial Average rose 43 points, or 0.13%, rallying from lows of the day boosted by shares of Amgen and United Health. Yields on the 10-year and 2-year U.S. Treasury bonds hit levels not seen since November, weighing on equities.
Energy was the biggest laggard across indexes. Albemarle and Devon Energy fell more than 10% and nearly 5%, respectively, weighing on the S&P 500.
Investors continue to worry about how the economy and equities will hold up as the Federal Reserve hikes rates to tame stubbornly high inflation. In a Friday speech, Federal Reserve Governor Michelle Bowman said there’s a long way to go before the central bank reaches its target of 2% inflation.
“We have been in a very contentious tug of war between the equity markets and the treasury markets,” said Art Hogan, chief market strategist at B.Riley. While Treasurys are signaling that the Fed is going to hold rates higher for longer, equities are not listening and instead looking for a soft landing.
“Equity investors seem to be looking through a couple more rate hikes and looking forward to a pause,” he added.
The moves came after major averages shed more than 1% on Thursday, after the Labor Department said the producer price index — an inflation metric that tracks wholesale prices — rose 0.7% last month. That was more than economists expected.
Stocks are trending down for the week. The Dow is down 0.61% for the week, on pace for its third negative week in a row — a first since September. The Nasdaq is down 0.18% and the S&P 500 has shed 0.85% for the week.
Next week, investors will continue to watch earnings season for signs of consumer strength or weakness. Home Depot, Walmart and Etsy are scheduled to report results next week.