The Dow rose and the S&P 500 ended lower in choppy trade on Friday, as beaten-down bank shares gained and investors grappled with how best to deal with an economy that could skid as the Federal Reserve moves to aggressively tackle inflation.
The yield on the benchmark 10-year US Treasury note hit a three-year high of 2.73%, helping boost the S&P banking index which on Thursday had slumped to 13-month lows. ”
“That is a response to the Federal Reserve minutes coming out and indicating both the pullback on purchases, as well as the high likelihood of a 50-basis point rate increase in May.” said Loreen Gilbert, CEO at Wealth Wise Financial in Laguna Beach, California.
Rate-sensitive lenders JP Morgan Chase & Co, Bank of America Corp, Citigroup Inc and Goldman Sachs Group Inc all gained.
The S&P 500 lost 11.53 points, or 0.26%, to end at 4,468.88 points, while the Nasdaq Composite lost 186.30 points, or 1.34%, to 13,710.99.
The Dow Jones Industrial Average rose 137.55 points, or 0.40%, to 34,721.12.
