NEW YORK (AP) — Stocks are drifting Friday, putting Wall Street on track for its first losing week in the past three.
The S&P 500 is up 0.1% in afternoon trading after three consecutive days of declines. The Dow Jones Industrial Average is up 44 points, or 0.1%, at 34,545 as of 2:40 p.m. Eastern time, and the Nasdaq composite is 0.1% higher.
Stocks have faced downward pressure this week due to concerns that an overheated economy will lead to the Federal Reserve keeping interest rates high for a longer period. Traders are adjusting their expectations for rate cuts next year, as recent reports have shown the resilience of the U.S. economy despite higher rates and struggles in other global economies.
These worries have caused bond yields to rise, leading to a decline in stock prices. However, yields have remained relatively stable on Friday, resulting in a subdued atmosphere on Wall Street.
The yield on the 10-year Treasury inched up to 4.26% from 4.25% late Thursday. The two-year Treasury yield, which closely reflects expectations for Fed actions, rose to 4.96% from 4.95%.
While most companies have already reported their earnings results for the spring season, a few are still making significant moves on Friday.
Smith & Wesson Brands saw an 11.9% jump after reporting stronger-than-expected results for the three months through July. Despite being a slow season for the company, sales rose by 35% compared to the previous year.
Kroger also experienced a 4.3% increase in its stock after its earnings report. While the grocer’s results surpassed analysts’ expectations for the latest quarter, its revenue fell short.
Kroger announced an agreement with Albertsons to sell some stores, private-label brands, and other assets as part of their proposed merger, which is pending regulatory approval. Additionally, Kroger agreed to pay over $1.2 billion to settle the majority of claims related to opioids brought against it by states, subdivisions, and Native American tribes.
The upcoming week is expected to be busier for global markets, with key events such as the monthly update on U.S. inflation and the European Central Bank’s rate decision. Economists anticipate the U.S. inflation data to show a 3.6% increase in consumer prices in August compared to the previous year.
The market has been unsettled by strong economic reports, as they suggest continued spending by U.S. households and the potential for further price increases. Additionally, concerns about the impact of high rates on the economy and job market remain. Strategists at Bank of America believe there is a possibility of the Fed raising rates again in November due to the slow moderation of the job market.
Other events to watch next week include more data on China’s economy and its impact on global growth. In stock markets abroad, Japan’s Nikkei 225 dropped 1.2% following a report showing weaker-than-expected growth in the country’s economy.
Indexes across much of Asia were modestly lower, while Europe saw higher indexes.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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