Stocks closed lower on Friday, with all major averages posting losses for the week as concerns about continued rate hikes persist.
The Dow Jones Industrial Average fell 305.02 points, or 0.9 percent, to close at 33,476.46 points. The S&P 500 fell by 0.73%, closing at 3,934.38, while the Nasdaq Composite fell by 0.7%, ending at 11,004.62.
On a weekly basis, the Dow fell 2.77% to mark its worst week since September. The S&P fell 3.37%, while the Nasdaq fell 3.99%.
Friday’s moves came after November The PPI showed wholesale prices higher than expected, which rose 0.3%. last month and 7.4% over the previous year. The core PPI, which excludes food and energy, also beat expectations.
Optimistic consumer sentiment The data eased some concernsbut focus remains focused on the busy economic calendar next week.
Attention has shifted to the Consumer Price Index due for release on Tuesday, which is expected to show whether inflation has subsided. The Fed is likely to raise 50 basis points at the end of its December meeting on Wednesday. While the increase will be less than the previous four hikes, concerns have mounted about whether the central bank can engineer a soft landing and prevent a recession.
Investors have long hoped for a pivot from the Fed’s aggressive hawkish stance, said Stephanie Lang, chief investment officer at Homerich Berg, but the data failed to support that desire.
“It’s our expectation that we really need to see inflation fall closer to the fed funds rate for the Fed to pause, and we still have quite a bit of delta between those numbers,” she said. “There is still a little work to be done on the inflation front to see this become a reality.”
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