Stocks experienced a decline on Friday, concluding the week with losses following the Federal Reserve’s indication of prolonged higher interest rates.

The S&P 500 (^GSPC) recorded a 0.2% decrease, while the Dow Jones Industrial Average (^DJI) retreated by approximately 0.3%, equivalent to 100 points. The tech-centric Nasdaq Composite (^IXIC) posted a slight 0.09% decline.

In recent days, market sentiment has turned cautious as it assessed the consequences of the Fed’s commitment to maintaining elevated borrowing costs as a means to combat inflation.

Federal Reserve Chair Jerome Powell’s comments did little to instill confidence that the U.S. economy would escape a potential recession, Yahoo Finance reported.

Additionally, S&P Global reported that its preliminary U.S. Composite PMI index for September came in at 50.1, a slight dip from August’s 50.2, indicating a slowdown in business activity.

Elsewhere in the realm of central banks, the Bank of Japan announced on Friday that it would continue with its ultra-low interest rates and reaffirmed its commitment to supporting the economy, signaling no imminent alteration to its substantial stimulus program.

Subsequently, the yen weakened against the dollar following this announcement.

Written by staff