The S&P 500 index closed lower on Friday but turned positive for the second week in a row: live updates

Stocks fell on Friday under pressure from rising oil prices and rising oil expectations as Wall Street ends a volatile week.

The S&P 500 index fell 0.50% to close at 4,327.78. The tech-heavy Nasdaq Composite lost 1.23% and settled at 13,407.23. The outlier was the Dow Jones Industrial Average, which rose 0.12%, or 39.15 points, to close at 33,670.29, Every week, the S&P 500 and Dow indices recorded gains.

The S&P 500 index rose 0.45% in its second strong week, while the Dow gained 0.79%. The Nasdaq fell 0.18%.

stocks fell to session highs following the release of consumer confidence data on Friday. Preliminary consumer confidence data fell in October while inflation expectations rose, according to a University of Michigan study.

The S&P 500 index hit its lowest level on Friday as oil prices rose on fears that the war between Israel and Hamas would increase geopolitical tensions in the Middle East. U.S. Crude Oil Futures West Texas Intermediate and international benchmark Brent crude futures rose more than 5%, posting their best day since April 3.

gold futures had their best day of the year since December, up 3.11%Since January 1, 2022, investors have also been tracking government bond yields. The yield on the 10-year Treasury note fell about 9 basis points to 4.62%.

The two-year Treasury yield was about 1 basis point lower, settling at 5.05%. Yield and pricing exhibit a reciprocal connection

“Interest rates continue to drive prices, and that’s the recovery we’ve seen since last Friday,” said Adam Turnquist, chief technical strategist at LPL Financial. “There are early signs that we are technically witnessing a capitulation here, but We continue to fight against the upward trend in long-term profitability.

Unless the 10-year Treasury yield falls to around 4.35%, Turnquist sees a “difficult and potentially uncertain market as we look to October.” Investors remain somewhat cautious on stocks but are optimistic that stocks could recover in the fourth quarter if yields fall again and interest rates fall.

“Bonds are currently competing strongly with stocks given their yield. Therefore, our current approach to the stock is neutral,” said Jeff Buchbinder, chief equity strategist at LPL.

As long as yields remain stable as anticipated, we foresee a favorable climate for equities to persist. The potential for a sudden surge in interest rates hinges on an inflation increase, a scenario our firm deems improbable.”

A series of largely positive reports from major financial companies kicked off the third-quarter earnings season on Friday. Shares of JPMorgan Chase rose 1.5%, Wells Fargo rose just over 3%, while Citigroup ended the day down 0.2%. BlackRock shares fell 1.3%.

UnitedHealth Group, which has the highest share price of any Dow stock, rose 2.6%.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top