Stocks Head into Weekend Mixed, Notching Another Week of Losses…..

U.S. equities were able to post gains in the final session of a wild week, but notched its tenth week of losses in eleven. Volatility persisted amid rising recession concerns, as a host of key global central banks tightened monetary policies, headlined by this week’s largest rate hike by the Fed since 1994. Economic data helped to keep recession concerns buzzing, as the Leading Economic Index declined for a third-straight month, and industrial production came in softer than forecasts. Treasuries were mixed, with the yield curve flattening some, while the U.S. dollar resumed its rally. Crude oil prices were sharply lower and gold traded to the downside. In equity news, Adobe topped earnings estimates but issued softer-than-expected guidance, and U.S. Steel issued a stronger-than-expected outlook. Europe finished mixed, with the global markets grappling with the host of monetary policy tightening, while markets in Asia also diverged.

The Dow Jones Industrial Average lost 38 points (0.1%) to 29,889, while the S&P 500 Index nudged 8 points (0.2%) higher to 3,675, and the Nasdaq Composite gained 152 points (1.4%) to 10,798. In very heavy volume due to quadruple-witching—the simultaneous expiration of option and futures contracts on stocks and indexes—8.3 billion shares of NYSE-listed stocks were traded, and 7.2 billion shares changed hands on the Nasdaq. WTI crude oil plunged $7.26 to $107.99 per barrel. Elsewhere, the gold spot price was down $9.40 at $1,840.10 per ounce, and the Dollar Index rallied 1.0% to 104.68. Markets were lower for another week, as the DJIA lost 4.8%, the S&P 500 decreased 5.8%, and the Nasdaq Composite fell 4.8%.

Treasuries were mixed in the final session of a volatile week as high inflation data forced the Fed to aggressively tighten its monetary policy with a 75 bp rate hike on Wednesday and signal more hikes to come.

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