US stocks today: US stocks slip as higher Treasury yields weigh on sentiment

US stocks ended a volatile week on a mixed note on Friday as Treasury yields climbed above 5% and oil prices remained above the $100-a-barrel mark, keeping inflation concerns in focus even as a semiconductor-led rally helped limit losses, according to Reuters.

The Dow Jones Industrial Average fell 114.74 points, or 0.22%, to 51,663.30, while the S&P 500 gained 11.53 points, or 0.12%, to 7,647.19. The Nasdaq Composite rose 92.72 points, or 0.35%, to 26,511.01.

Oil keeps inflation worries alive

Crude prices pulled back from their session highs after China, at Saudi Arabia's request, asked Iran to limit attacks by Houthi rebels on Saudi oil infrastructure. However, oil still settled above $100 a barrel, keeping pressure on markets after a week dominated by the Federal Reserve's interest-rate decision and concerns over inflation.


Soaring crude prices have also pushed diesel prices to record levels, raising concerns about wider cost pressures across sectors such as farming and shipping.

"The market seems to be closely tied to movements in oil prices," said Chuck Carlson, chief executive officer of Horizon Investment Services in Hammond, Indiana. "So when they are trending higher for any short period of time, I think you get a little bit more of a respite in the market."

The oil move offered some relief to equities, but investors remained cautious about how persistent energy-price pressures could affect monetary policy.

Financial markets are now pricing in more than a 50% probability of another Fed rate hike at the central bank's October meeting, up from 42.5% last Friday and 7.2% a month ago, according to CME's FedWatch tool.

Fed fallout, triple witching shape trade

The week's trading was split between nervous positioning ahead of the Fed's widely expected rate hike and the market's reaction after the decision.

"It's almost as if everybody got to the end of the week and got exhausted from all the activity this week and decided to just play it close to the vest here," Carlson said. "A lot of investors are trying to figure out not just the short-term implications, but longer-term implications of what the Fed may be embarking on and how that's going to impact equities and fixed-income investments."

He added that there was also a "reluctance to be positioned in any directional way going into the weekend in an environment where exogenous events could potentially set up some crazy trading patterns on Monday."

The quarterly expiry of stock, index options and futures contracts, known as triple witching, likely added to late-session volatility.

Elsewhere, Berkshire Hathaway said Warren Buffett will step down as chairman to become chairman emeritus, nine months after handing the CEO role to Greg Abel.

Xenon Pharmaceuticals tumbled after temporarily pausing enrolment in clinical studies of its experimental drug for major depression and bipolar disorder following reports of side effects.

Cryptocurrency-linked stocks Coinbase, Strategy and Robinhood surged as bitcoin prices jumped.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)