The S&P 500 slipped 9.94 points, or 0.2%, to 4,320.06 after a late-day swoon erased a modest gain it had held for most of the day. It capped an ugly slide caused by
The Dow Jones Industrial Average fell 106.58 points, or 0.3%, to 33,963.84, and the Nasdaq composite dipped 12.18, or 0.1%, to 13,211.81.
Pressure has built on
Yields eased a bit Friday, which helped the S&P 500 stabilize somewhat following its 1.6% drop a day before, which was its worst since March. The yield on the 10-year
The two-year
When bonds are paying more in interest, investors are less willing to pay high prices for stocks. High rates hit particularly hard on stocks seen as the most expensive or forcing investors to wait the longest for big growth in the future.
Recently, that’s meant particular pain for big technology stocks. Nvidia trimmed its loss for the week to 5.2% after rising 1.4% Friday. The Nasdaq composite, which is full of tech and other high-growth stocks, slumped 3.6% for its worst week since March.
A couple tech-oriented companies got better news Friday after
Microsoft fell 0.8%.
Shares of automakers were mixed after the United Autoworkers said it will expand its strike by walking out of 38
Auto workers are looking for raises in pay and other benefits, and a prolonged strike could put upward pressure on inflation if shortages send prices higher. The strikes are just one among a long list of challenges looming over the economy, including a possible
Hanging above them all is the realization sinking in on
High rates drag down inflation by intentionally slowing the economy and denting prices for investments. They also take a notoriously long time to take full effect and can cause damage in unexpected, far-ranging corners of the economy. Earlier this year, high rates helped lead to three high-profile collapses of
Economists have been pushing out their forecasts for the first cut to interest rates by the Fed next year. EY Chief Economist
He says recent reports showing a cooldown in the job market suggest the economy may experience a "controlled landing” from high inflation, instead of the hard landing of a severe recession that some investors fear will result from interest rates staying higher for longer.
A report on Friday suggested business activity across the economy is stagnating. A preliminary measure of output compiled by
In stock markets abroad, Chinese indexes rose following a report by Bloomberg saying regulators are considering allowing foreigners to own more shares. The report cited unnamed people “familiar with the matter.”
Also on Friday, the
Hong Kong’s Hang Seng jumped 2.3%, while stocks in
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AP Business Writers
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