Friday, April 08, 2022

DJIA: 34,721.12, up 137.55
S&P 500: 4,488.28, down 11.93
Nasdaq: 13,711.00, down 186.30
Stocks end downbeat week, yields jump

U.S. stocks finished mixed on Friday, ending a downbeat week as Wall Street assessed a number of market headwinds. The S&P 500 dipped 0.3% to end 1.3% lower for the week. The Nasdaq Composite fell 1.3%, dragging its five-day rout to 3.9%–its worst weekly performance since January 21. Both benchmarks snapped their first three-week winning streak since November. The Dow added 137 points, down marginally on the week (-0.3%). The Dow Jones Transportation Average weathered its largest five-day slide since June 2020 (-6.7%).

Prospects of aggressive monetary policy tightening, the ongoing Russian-Ukraine war, and COVID-19 lockdowns in China all continued to cloud the economic outlook. Inflationary concerns also pressured sentiment. Next week, data is expected to show the U.S. Consumer Price Index (CPI) peaked at 8.4% year-over-year in March.

Treasuries extended their slump as investors weighed an increasingly hawkish Federal Reserve. This yield on the 10-year note advanced for a sixth consecutive session, up six basis points (0.06%) to 2.70%. Notably, the benchmark yield spiked 33 basis points (0.33%) on the week to touch its highest level since March 2019. In commodities, West Texas Intermediate crude rebounded 2% to $97.95/barrel, though still logged a second straight weekly decline. In FOREX trading, a measure of the U.S. dollar rose for a seventh consecutive day, hovering near a peak not seen since July 2020.

Seven of 11 S&P 500 sectors closed in positive territory, with Energy leading the advance. Financials also outperformed ahead of earnings reports from some of Wall Street’s biggest banks next week. Technology lagged amid weakness in chipmakers.

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