DJIA: 34,861.24, up 153.30
S&P 500: 4,543.06, up 22.90
Nasdaq: 14,169.30, down 22.54
Stocks post weekly gain; bonds tumble
U.S. stocks finished mixed on Friday, though the major averages still posted a second straight weekly gain. The S&P 500 rose 0.5%, closing the week 1.8% higher and back within 5.3% of its January 3 record. Nine of 11 S&P 500 sectors closed in positive territory, with Energy outperforming, while Technology and Consumer Discretionary shares trailed. The Nasdaq Composite dipped 0.2%, still logging a weekly advance of 2%. The Dow added 153 points, with the blue chip index turning slightly positive on the week (+0.3%). Oversold conditions, contrarian buy signals, and growing attention on stocks as a potential hedge against inflation were all cited as supportive of risk appetite.
Meanwhile, a historic bond market rout deepened. Portions of the U.S. Treasury yield curve inverted as shorter-dated yields climbed faster than longer-dated rates. The yield on the 10-year note briefly touched 2.50% before settling 34 basis points (0.34%) higher on the week at 2.48%. The more Fed-sensitive two-year note yield experienced a similar move, finishing the session at 2.28%. Recent hawkish commentary from a chorus of Fed leaders has spurred expectations for more aggressive rate hikes in the near-term.
On the data front, a final March reading from the University of Michigan confirmed consumer sentiment deteriorated to a fresh decade-low, while the report also revealed inflation expectations hit a 41-year high. Separately, pending home sales unexpectedly fell for a fourth consecutive month in February. In commodities, West Texas Intermediate crude capped a weekly gain of roughly 8%, ending at $113.04/barrel as reports of an attack on an oil facility in Saudi Arabia served to exacerbate supply concerns.
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