- US stocks ticked higher Friday but were on track for a losing week.
- Oil prices and bond yields surged during the week, with Brent crude up 0.75% Friday.
- Policymakers made no rate adjustment Wednesday, but could make one more hike before year’s end.
US stocks inched higher in the final trading session of the week. The major indexes are coming off three consecutive days of losses and remain on track to finish the week in the red as bond yields jump on hawkish Federal Reserve commentary and surging oil prices.
The Fed on Wednesday opted to leave its benchmark rate unchanged, but communicated that one more hike is still on the table before the end of the year.
After policymakers indicated that rates could remain higher for longer into 2024, bond yields surged, with the 10-year Treasury hitting 4.49%, its highest level since 2007. The 2-year Treasury also jumped to its highest point since 2006.
Meanwhile, new data from the Labor Department this week showed weekly jobless claims fell 20,000 to 201,000 for the week ending September 16, the lowest mark since January.
“[The] Initial Claims report was well below both expectations and 2022 – present averages,” DataTrek Research co-founder Nicholas Colas wrote in a note. “Only 10 of the last 90 weeks have seen lower readings. The US labor market remains healthy. Markets responded accordingly, and we still think it is too early to buy longer-dated bonds.”
Here’s where US indexes stood shortly after the 9:30 a.m. opening bell on Friday:
Here’s what else is going on:
In commodities, bonds, and crypto: