NewzNEW YORK (AP) — Stocks rose on Wall Street Friday as a cooldown in oil prices helped relieve some of the pressure building from the bond market.The S&P 500 added 0.5% after flipping between modest gains and losses earlier in the day. It's coming off a three-day losing streak marred by big swings caused by rising bond yields, but it nevertheless remains near its all-time high set last month and is on track to finish its first winning week in the last three.The Dow Jones Industrial Average was up 413 points, or 0.8%, as of 12:42 p.m. Eastern time, and the Nasdaq composite was 0.5% higher.Stock indexes initially rose after trading began, aided by a drop in oil prices.
The most actively traded contract in the market for Brent crude, the international standard, fell 3.4% to $96.71 per barrel.It’s been yo-yoing on uncertainty about when the war with Iran will allow oil to flow freely again from the Middle East. Prices go down when hopes rise for a possible deal to fully reopen the Strait of Hormuz to oil tankers, and they go up when doubts resurface.But a report on U.S. consumer sentiment released shortly after trading began undercut that support because it helped push Treasury yields higher.
The report from the University of Michigan said U.S. consumers are bracing for inflation of 4.6% in the coming year, up from their forecast of 4% the month before. It also said that overall sentiment among consumers was not as bad as economists expected, even if it was the lowest in four months.The expectations for high inflation are potentially dangerous for the economy because they could encourage behavior that leads to a vicious cycle that makes the cost of living spiral even higher.
Indeed, some consumers told the survey that buying some kinds of products now would help them avoid higher prices in the future. If they rush to make such purchases, it could encourage sellers to raise prices further.Following the report on consumer sentiment, the yield on the 10-year Treasury held steady at 5.18% from late Thursday and is near its highest level since 2007.High yields slow the economy by making it more expensive for everyone to borrow money, while undercutting prices for stocks and other investments. Rising yields worldwide are rattling all kinds of financial markets, and yields are climbing not only because of worries about high inflation but also because of big government d…
NEW YORK (AP) — A cooldown in oil prices on Friday is clashing on Wall Street with pressure building from the bond market, leaving the U.S. stock market mixed in response.The S&P 500 was virtually unchanged in morning trading, but only after flipping between earlier gains and losses. The Dow Jones Industrial Average was up 155 points, or 0.3%, as of 10:30 a.m.
Eastern time, and the Nasdaq composite was 0.1% lower.Stock indexes initially rose after trading began, aided by a drop in oil prices.
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