The S&P 500 and Dow ended down about 1% and 3%, respectively, breaking a six-week streak of gains. Meanwhile, the NASDAQ rose slightly, marking its seventh consecutive weekly gain, buoyed by strong performance in tech stocks.
Although the NASDAQ didn’t close at a record high, it briefly reached an all-time intraday peak on Friday, finishing the week just 0.7% below its record close from three and a half months ago. In contrast, the S&P 500 has stayed near record levels since mid-September.
The yield on the 10-year U.S. Treasury note rose for the fifth time in six weeks as inflation concerns and interest rate uncertainty persisted. It closed at 4.24% on Friday, up from 4.07% the previous week, and well above its recent low of 3.62% on September 16.
As earnings season continues, analysts expect a small group of U.S. mega-cap tech stocks to drive a large share of earnings growth. According to FactSet, these “Magnificent Seven” stocks are forecasted to show an average third-quarter growth of 18.1%, compared to just 0.1% growth for the remaining 493 S&P 500 companies.
U.S. consumer sentiment reached a six-month high, with the University of Michigan’s Consumer Sentiment Index reading of 70.5 on Friday—up from a preliminary 68.9. This marks the third consecutive month of increased sentiment.
In the housing sector, sales of previously owned homes fell 1.0% in September from the prior month and declined more than 3.5% compared to a year earlier, per the National Association of Realtors.
U.S. crude oil prices rose nearly 5% this week, closing at around $72 per barrel on Friday, although this gain didn’t fully counterbalance last week’s 8% drop. Oil remains well below its recent high of around $83 in early July.
In the coming week, additional earnings reports are expected along with Wednesday’s preliminary U.S. GDP estimate for the third quarter. Friday’s jobs report will also show how October’s employment growth compares to September’s higher-than-expected 254,000 job gain, the strongest in six months.