The final session of the week saw a decline in risk appetite as stock markets dipped due to increased inflationary pressures. Oil prices, on the other hand, made a significant climb, with the WTI benchmark reaching $90 per barrel.
The strike led by the United Auto Workers union against major automakers, including Ford Motor Co., Stellantis N.V., and General Motors Co., raised concerns about potential wage increases and the strength of the economy.
President Joe Biden highlighted the importance of treating workers better, recognizing their skills and sacrifices, and advocating for fairer distribution of profits.
The increase in Treasury yields further dampened risk sentiment, with the 10-year yield inching closer to its highest level since November 2007.
In Friday’s trading, the S&P 500 fell 1%, while the Nasdaq 100 dropped even further by 1.3%. The Dow Jones fared better but still ended the day 0.5% lower. Small caps also experienced a decline.
Looking at major US equity ETFs, the SPDR S&P 500 ETF Trust, SPDR Dow Jones Industrial Average ETF, and Invesco QQQ Trust all saw decreases in their values.
Among the S&P 500’s sector ETFs, the Health Care Select Sector SPDR Fund performed relatively better, while the Tecnology Select Sector SPDR Fund and the Consumer Discretionary Select Sector SPDR Fund were the laggards.
The University of Michigan’s US consumer sentiment index dipped in September, with future expectations improving but current economic conditions dropping. Year-ahead inflation expectations decreased, reflecting consumer anticipation of reduced inflationary pressures.
In terms of individual stocks, Adobe Inc. saw a decline following its quarterly results, while Apellis Pharmaceuticals rose after an upgrade from Wells Fargo. Planet Fitness Inc. hit a three-year low after its CEO resigned.
In commodities and bond markets, crude oil and Treasury yields saw slight upticks, while the dollar weakened. European equity indices had a mixed session. Gold and silver prices rose, while Bitcoin experienced a slight decline.
