Wall Street finished mixed on Friday as investors wrapped up a volatile week marked by the Federal Reserve’s first rate hike in three years, elevated oil prices and rising Treasury yields.
The Dow Jones Industrial Average fell 95.40 points, or 0.18%, to 51,682.64. The S&P 500 edged 0.17% higher to 7,650.50, while the Nasdaq Composite gained 0.39% to 26,522.55.
US Treasury yields moved higher, with the 10-year yield briefly climbing back above 5% before settling around 5.01%. It had earlier reached its highest level since July 2007.
Oil remained above US$100 a barrel despite falling on Friday. WTI declined 1.58% to US$100.30, while Brent lost 0.91% to US$103.87.
For the week, the Dow fell 1.7%, its third consecutive weekly decline and worst performance since March. The S&P 500 slipped around 0.1%, while the Nasdaq gained 0.7%.
Markets are continuing to assess the outlook for US rates after the Fed raised rates by 25 basis points last week and signalled at least one further increase could come this year.
Australian Market Outlook
Australian shares are set for a weaker start on Monday, with S&P/ASX 200 futures pointing to a fall of 0.7%, despite modest gains on Wall Street.
The local market has fallen nearly 4% this month, wiping out its gains for the year, as expectations for further Reserve Bank tightening weigh on sentiment.
Investors are pricing a rate increase at next week’s RBA meeting, which would lift the cash rate from 4.35% to 4.6%. Markets are also increasingly considering the prospect of additional tightening as the RBA looks to contain persistent inflation.
