Title: S&P 500 Records Weekly Decline Amid Concerns of Rising Oil Prices and Inflation Data
The S&P 500 closed slightly higher on Friday, but below its session high, adding to what was otherwise a challenging week for investors. All three major indexes experienced weekly declines, weighing on market sentiment.
Investors remained cautious throughout the week, as rising oil prices and upcoming inflation data fueled concerns about potential interest rate moves by the Federal Reserve. Market participants eagerly awaited the release of the Consumer Price Index (CPI) for August, as it would provide crucial insights into the central bank’s monetary policy decisions.
Yields on 10-year Treasury notes were lower, while the rise in 2-year Treasury yields seemed to impact stock performance. The Dow Jones Industrial Average ended the week with a 0.22% gain, while the S&P 500 registered a 0.14% increase, and the Nasdaq Composite added 0.09%.
Over the course of the week, the S&P 500 declined by 1.3%, the Nasdaq dropped by 1.9%, and the Dow fell by 0.8%, reflecting the overall negative sentiment in the market.
Despite recent setbacks, Apple managed to eke out a small gain. The tech giant faced a decline after news circulated about Beijing’s ban on iPhones for central government employees. Nevertheless, the S&P 500 technology sector closed higher, contributing to market gains. Additionally, the energy sector experienced the most significant percentage gains due to rising oil prices.
The utilities sector saw a daily gain of 0.96%, but the real estate sector registered the largest decline, losing 0.63%.
Economic data, including services activity and weekly jobless claims, stoked inflation fears and contributed to uncertainty surrounding the Federal Reserve’s monetary policy decisions.
In terms of individual stocks, Kroger closed up 3% after beating quarterly adjusted profit estimates, while Gilead Sciences added 2.8% after receiving an upgrade from BofA Securities.
However, GameStop faced a 6% decline after reports emerged of an investigation by the U.S. Securities and Exchange Commission into the company’s chairman.
Advancing issues slightly outnumbered declining ones on both the NYSE and Nasdaq. Furthermore, the S&P 500, along with the Nasdaq Composite, posted new highs and lows throughout the week.
Overall, market activity on U.S. exchanges was significant, with a total of 8.89 billion shares changing hands.
As the new week begins, investors will likely keep a close eye on oil prices and the upcoming CPI release, as these factors continue to shape market sentiment and influence investment decisions.
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