Mixed Global Stock Response as BOJ Hikes Rates

Global stocks were mixed on Friday as investors reacted to recent central bank moves to combat inflation.

The Dow Jones Industrial Average closed modestly lower, while the Nasdaq Composite finished higher. European markets, however, retreated by around 1.5 percent in Frankfurt, London, and Paris.

The Bank of Japan raised interest rates to a three-decade high of 1.25 percent with a 25-basis-point hike, but the yen fell against the dollar due to concerns that the pace of hikes might be slower than expected.

Investors saw this move as a sign that the Federal Reserve is serious about countering inflation, but also acknowledged that higher yields continue to drive investors towards bonds.