The S&P 500 notched a two-week winning streak despite slipping Friday, weighed down by rising Treasury yields and fresh data showing consumers continue to worry about the economy.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average fell 273 points, or 0.6%, the S&P 500 index was closed about 0.1% lower after hitting a fresh intraday record 6,594.67 earlier in the day. While the NASDAQ Compositeadded 0.5%.
Consumer sentiment softens again; Treasury yields rise
The University of Michigan Consumer Sentiment index, which tends to be negatively correlated with inflation, fell to 55.4 in September from 58.2 last month, missing expectations for unchanged reading.
The University of Michigan’s survey of preliminary expectations for one-year inflation was unchanged from prior month’s reading 4.8%, but inflation expectations over the next five years climbed to 3.9% from 3.5%.
Treasury yields rebounded from a recent dip, with yields on the 10-Year Treasury up about 6 basis points to 4.07%.
The rise in yields come even as the markets have almost fully priced a rate cut for next week.
Fed rate cut cemented for next week
Data on Thursday showed U.S. consumer prices rose slightly above expectations and the sharpest monthly increase since January, while weekly jobless claimsjumped to 263,000, the highest level since 2021, underscoring signs of softening in the labor market after last week’s weak nonfarm payrolls report.
