Wall Street Closes Tumultuous Week with Mixed Signals

Wall Street closed a mixed week on Friday as US Treasury yields topped 5% and crude prices remained above $100 per barrel, keeping inflation worries front and center. The Federal Reserve's widely expected interest rate hike dominated market attention throughout the week.

A semiconductor rally helped US equities avoid a significant selloff, said Chuck Carlson, CEO of Horizon Investment Services. He noted that investors are trying to figure out both short-term and long-term implications of the Fed's decision on equities and fixed-income investments.

Inflation concerns remained prominent as crude prices settled above $100 per barrel, but eased back from session highs after China asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure. Central banks around the globe have embarked on a policy-tightening cycle to rein in inflation fueled by the Iran war.

The Bank of Japan lifted interest rates to a 31-year high following in the footsteps of the Federal Reserve and the European Central Bank, while the Bank of England held rates firm but warned of future hikes. Financial markets are currently pricing in more than a 50% probability of another Fed rate hike at the central bank's October meeting.