US Stocks Wobble as Treasury Yields Hit 5%, Oil Prices Above $100

US stocks closed mixed on Friday as benchmark US Treasury yields surpassed 5%, and crude prices rebounded but remained above $100 per barrel, keeping inflation concerns at the forefront.

Investors navigated a week marked by anticipation of the Federal Reserve's widely anticipated interest rate hike and its aftermath. The semiconductor sector helped the Nasdaq evade the broader selloff, which pulled the S&P 500 and Dow marginally lower.

The S&P 500 is on track to end the session with a weekly loss, while the tech-heavy Nasdaq is poised to finish nominally higher than last Friday's close. The blue-chip Dow is headed for its largest weekly percentage decline since March.

Oil prices paused their upward climb after China, at Saudi Arabia's request, asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure. Soaring oil prices have driven diesel prices to record levels, which may translate into broader inflationary pressures affecting farming and shipping costs.

Central banks globally have initiated a policy-tightening cycle to rein in bond yields and tame inflation fueled by the Iran war. The Bank of Japan lifted interest rates to a 31-year high, following the Federal Reserve and European Central Bank's lead, in an effort to control global inflation.