US Stock Market Ends Week Lower Amid Interest Rate Hike, Soaring Energy Costs
The US stock market ended the week lower due to an interest rate hike, soaring energy costs, and rising inflation concerns.
The Dow Jones Industrial Average fell 0.2%, marking its third consecutive weekly decline, while the S&P 500 dipped 1.1% and the Nasdaq 100 rose 1.7%. Treasury 10-year yields settled above 5%, their highest point since July 2007.
Elevated oil prices also weighed on equities, with US crude hovering above $100 a barrel. The VanEck Semiconductor ETF (SMH) and the iShares Semiconductor ETF (SOXX) added over 2% due to gains in Nvidia (NVDA), Advanced Micro Devices (AMD), Broadcom (AVGO), and Micron Tech (MU).
According to Matt Maley at Miller Tabak, there are no signs that oil prices will decline significantly or yields will tumble over the intermediate term. He warned of a significant jump in volatility.