Stocks fell on Friday, with the Dow Jones Industrial Average posting its worst weekly loss since October, as traders worried the Federal Reserve could start raising rates sooner than expected. Economic comeback plays led the market selloff.
The 30-stock index dumped 533.37 points, or 1.6%, to end the week during at 33,290.08, bringing its week-to-date losses to 3.1%.
The S&P 500 swooned 55.41 points, or 1.3%, to 4,166.45, pushing its loss this week to 1.5%. The S&P 500 energy sector lost 4.5% and industrials are down 3.3%, respectively, week to date. Financials and materials meanwhile, are down more than 5% each.
The NASDAQ lost 130.97 points to 14,050.79.
Bullard said it was natural for the Fed to tilt a little “hawkish” this week and that the first rate increase from the central bank would likely come in 2022.
The market’s slide began after the Federal Reserve on Wednesday afternoon added two rate hikes to its 2023 forecast and increased its inflation projection for the year.
Friday also coincides with the quarterly “quadruple witching” in which options and futures on indexes and equities expire. Many expect trading to be more volatile in light of this event.
Prices for 10-Year Treasurys were sharply higher, bringing down yields to 1.44% from Thursday’s 1.52%. Treasury prices and yields move in opposite directions.
Oil prices recovered 56 cents to $71.60 U.S. a barrel.
Gold prices let go of $6.10 to $1,768.70 U.S. an ounce.