US Stocks Close Mixed Week as Bond Yields and Oil Prices Weigh

U.S. stock indexes closed a volatile week on a mixed note Friday, pressured by rising bond yields and swinging oil prices that underscored investor anxiety over persistent inflation and central bank tightening. The S&P 500 rose 0.2%, the Dow Jones Industrial Average fell 0.2%, and the Nasdaq composite gained 0.4%, capping a week defined by the Federal Reserve's first interest rate increase in over three years. The yield on the 10-year Treasury note climbed to 5.00% on Friday, having topped the 5% level earlier in the week for the first time since 2023. Higher yields, which make borrowing more expensive across the economy, have been accelerating due to stubbornly high inflation. That inflation has been exacerbated by volatile oil prices, with Brent crude reaching nearly $110 per barrel early in the week before settling at $103.87 on Friday. The Federal Reserve raised the federal funds rate by 25 basis points on Wednesday, its first hike in more than three years, in an effort to rein in inflation that remains well above its 2% target. Officials signaled that more increases could follow this year if price pressures do not abate.