US stocks fell and the dollar rose on Friday, despite improved Treasury yields, as traders weighed further interest rate hikes by the Federal Reserve to combat inflation.
* Faced with the looming rate hike, high-growth and tech stocks including Amazon.com Inc and Alphabet Inc fell more than 2%. Banks were lower, on track to end the week in the red, which could end their six-week winning streak. Also, poor results from heavy equipment maker Deere & Co. added to the risk.
* As of 1700 GMT, the Dow Jones Industrial Average was down 187.76 points, or 0.56%, at 33,810.45; the S&P 500 index was down 44.69 points, or 1.03%, at 4,239.46; and the Nasdaq Composite fell 233.32 points, or 1.80%, to 12,731.94.
* European stocks fell, ending the week lower, as the higher rise in German producer prices in July contributed to a worsening economic outlook. The pan-European STOXX 600 index fell 0.8%.
* MSCI’s measure of global shares fell 1.28%.
* “When market players come back from their holidays and look back … they will see that central banks are still far from achieving their goals of curbing inflation,” ING rates strategists said in a note to their peers. customers.
* “That means a continuing struggle between central bank tightening expectations and recession fears,” he added.
* The Fed needs to keep raising borrowing costs to rein in high inflation, a number of US central bank officials said on Thursday, even as they debated how fast and how high to raise them.
* The dollar benefited from the Fed’s comments and investors’ caution, hitting a one-month high. The dollar index gained about 0.6% to 108.14 points, and the euro fell 0.5% to $1.0036.
* Benchmark 10-year Treasury yields edged higher, nearing a one-month high of 2.9776%.
* Oil prices added a third day of gains after suffering early losses in the session.
* Gold was headed for its first weekly decline in a month, after hitting a three-week low. Spot gold fell for the fifth straight session, shedding nearly 0.5% to $1,749 an ounce, in what could be its longest losing streak since November 2021.
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