Stocks fell on Friday as Wall Street’s summer rally slowed down and fears of future rate hikes resurfaced.
St. Louis Federal Reserve President James Bullard indicated that the central bank would likely continue hiking rates in the near term, and that the FED is considering another large rate hike next month.
The S&P 500 slid 1.29% on Friday to 4,228.48, closing the week 1.21% lower, while the Dow Jones Industrial Average tumbled 292.30 points, or 0.86% on Friday to 33,706.74, down 0.16% for the week. The Nasdaq Composite dropped 2.01% on Friday to 12,705.22, down 2.62% for the week.
Markets and monetary policy officials are watching the job market closely, as rate increases aim to cool a labor market and 40-year high inflation. Jobless claims were at 250,000 for the week ending August the 13th, 2000 less than the prior week.
The dollar index rose on Friday and was on pace to post its biggest weekly gain since April 2020. Meanwhile, the euro closed 0.54% lower to $1.0034 against the dollar, nearing parity again.
Bitcoin dropped below the $22,000 level, to its lowest level this month, on the back of a broader crypto sell-off, including Solana and Cardano.
Earlier in August, Bitcoin reached the $25,000 level for the first time since June.
European markets also fell this week, on worries of global uncertainty as investors chart the course for monetary policy. Stoxx 600 ended 0.77% lower on Friday closing at 437.36, also down 0.8% for the week, with travel and leisure stocks leading losses, down 3%. Health care stocks, meanwhile, added 0.7%.