(Reuters) – U.S. stocks fell on Friday and the dollar rose, even as U.S. Treasury yields rose as traders worried about inflation and what the Federal Reserve will do to combat it .
With rising rates looming, big tech stocks like Amazon.com Inc (NASDAQ: AMZN ) and Alphabet (Nasdaq: ) Starq: GOOGL) Inc fell more than 2%. JPMorgan Chase (NYSE: JPM), Bank of America (NYSE: BAC), and Deutsche Bank (NYSE: NYSE) Ticker: DB) fell more than 2%, reversing the industry’s late summer rally. An earnings miss at heavy equipment maker Deere (NYSE: DE) & Co. added to risk aversion.
The Dow Jones Industrial Average fell 0. 86%, to33,706. 04, Standard & Poor’s 600 Loss 1.26%, to 4, 86.44, the Nasdaq Composite fell about 2% to 96 ,332.14.
European stocks fell on Friday, posting weekly losses as German producer prices hit record high in July , adding to the pessimism about the economic outlook. Pan-European STOXX 600 closed down 0.8%.
MSCI’s world index of stocks tracked by 26 country stocks fell 1.3% .
“When market participants start coming back from the holidays and looking back…they will find that central banks are still far from achieving their goals to control inflation,” ING rates strategists said in a statement. report to the client.
“This means a constant battle between central bank tightening expectations and recession fears.”
U.S. central bank officials “have a lot of time” before they need to act Decided to approve rate hikes in their September. 15-14 policy meeting, Richmond Fed President Thomas Barkin said Friday.
But more hawkish rhetoric from the Fed on Thursday helped push the dollar index up about 0.5% on Friday to a one-month high. The euro fell 0.44% to $1. .
U.S. Treasury yields also rose on Friday, mimicking a sell-off in European bonds – shrugging off inflation fears.
US benchmark -year Treasury yield rose to a one-month high of 2.9776%, just below the 3% threshold it crossed For the first time since May 2018 as investors worried about the Fed’s plan to tighten monetary conditions.
Next week, investors will pay close attention to the minutes of the ECB’s July meeting, as well as comments from Federal Reserve Chairman Jerome Powell at the annual global central bank meeting in Jackson Hole, Wyoming, 8 Month26.
” incoming data, in net, indicates The U.S. economy remains fairly healthy,” Bank of America economist Michael Gapen wrote in a note to clients. He cited improvements in auto assembly and retail sales, but pointed to a decline in the number of dwellings.
“Incoming data is not consistently strong… We note that the strength will eventually be accompanied by further strengthening in policy rates,” Gapen added.
Oil, gold and cryptocurrencies close
Oil prices held steady on Friday, but fell this week on a stronger dollar and fears that a slowing economy would dent crude demand.
U.S. crude fell 0.4% to $86 .04 barrel and brun Extra Crude Oil in $86., down 0. on the day )%.
Cryptocurrencies fell sharply, with a sudden sell-off dragging Bitcoin to a three-week low. Finally $15,67, down nearly 9% on the day.
Gold is set for its first weekly decline in a month after hitting a three-week low. Spot gold fell for the fifth consecutive trading day, a drop of about 0. 86% at $1 an ounce, 746, which could be the longest streak of declines since November 706.