Central Banks Double Down on Inflation Fight as Global Markets Fluctuate

Global equity markets saw a mixed performance on Friday, as the benchmark S&P 500 and the Nasdaq finished higher after reversing losses in early trade. The Dow Jones Industrial Average, however, ended down by 0.18%. Materials, utilities, and real estate stocks led declines, while technology and industrials drove gains.

The recent surge in inflation fears has driven central banks to adopt a more hawkish stance, with the Federal Reserve raising rates for the first time in three years on Wednesday. The Bank of Japan also raised rates to 1.25%, a 31-year high, while the European Central Bank flagged the need for further tightening.

The war in the Middle East continues to exert pressure on oil prices, with Brent crude futures falling nearly 1% to settle at $103.87. The yen weakened against the greenback, down 0.50%, after the BOJ's rate hike. Spot gold rose 0.98% to $4,382.59 an ounce.