US Stocks End Mixed Week Amid High Yields and Oil Prices

The S&P 500 rose 0.2% to close at 7,650.50 on Friday. The index recorded its second consecutive weekly loss. The Dow Jones Industrial Average fell 0.2% to 51,682.64. The Nasdaq composite gained 0.4% to end at 26,552.55.

Market activity was driven by rising borrowing costs and energy expenses. The yield on the 10-year US Treasury climbed to 5.00% from 4.94% late Thursday. This marked the first time the rate exceeded 5% since 2023. Higher yields increase the cost of borrowing for governments, businesses, and consumers.

Energy Costs Drive Inflation Up

Brent crude oil settled at $103.87 per barrel. The price dropped 0.9% from the previous day. It had touched nearly $110 early in the week. War with Iran has pushed oil prices higher. Gasoline prices reached $4.47 per gallon, up from $3.20 a year ago.

Diesel prices hit a record $6.45 per gallon. This increases shipping costs for goods ranging from groceries to clothing. Inflation remains above 3% by several measures. Steelmaker Nucor reported higher steel mill profits in the third quarter. However, its overall profit forecast missed analyst expectations. Nucor shares fell 6.3%.

Central Banks Tighten Monetary Policy

The Federal Reserve raised its benchmark interest rate this week. This was the first increase in three years. The Bank of Japan also raised its rate to a 31-year high. Officials aim to control persistent inflation. The Fed suggested further hikes may be necessary.

Warren Buffett stepped down as chairman of Berkshire Hathaway. The company stock rose 0.1% on the news. General Motors shares dropped 5.1%. Qualcomm stock fell 5.8%. Coinbase Global climbed 11.7% for the largest gain in the S&P 500. Robinhood Markets rose 9.1%.

Global Markets Show Divergent Moves

European stock indexes declined on Friday. The CAC 40 in Paris fell 1.5%. The FTSE 100 in London dropped 1.5%. Asian markets performed better. South Korea's Kospi index jumped 2.7%. Japan's Nikkei average rose 1.4%. According to GN auto markets/bonds: bond trading, these moves reflect varying regional economic pressures.