S&P's Weekly Winning Streak Is Over

Index slips on the day, though the Dow rises
By Newser Editors and Wire Services
Posted Apr 8, 2022 3:05 PM CDT
S&P's Weekly Winning Streak Is Over
In this photo provided by the New York Stock Exchange, trader Michael Capolino, right center, works on the trading floor Friday, April 8, 2022.   (Courtney Crow/New York Stock Exchange via AP)

Stocks were a decidedly mixed bag on Friday as investors braced for the Federal Reserve to press the brakes on the economy more aggressively to beat down inflation. The Dow rose 137 points to 34,721, but the benchmark S&P 500 slipped 11 points to 4,488. The tech-dominated Nasdaq, meanwhile, fell 186 points to 13,711. The S&P registered its first losing week in the last four. Generally, stocks have slumped as the Fed swings more aggressively toward fighting inflation by raising short-term interest rates and making other moves, per the AP. It’s a sharp reversal from keeping rates at record lows to stimulate the economy and carry it through the pandemic.

Investors learned this week that the Fed may hike short-term rates by double the usual amount several times at upcoming meetings, and that it came very close to doing so last month. The last time that happened was in 2000. The Fed also indicated in the minutes from its last meeting that it's likely to shrink its massive stockpile of bonds by up to $95 billion monthly, starting as soon as next month. On Wall Street, higher rates particularly hurt stocks seen as the most expensive. That’s because higher rates mean better returns for owning relatively safe bonds, which makes investors less willing to pay higher prices for riskier assets like stocks.

(More stock market stories.)

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