Stocks ended Friday's session mixed, with investors both encouraged by improving U.S. economic data but rising interest rates stoked negative sentiment and inflation fears. All three major averages posted weekly losses, with the S&P 500 dropping 2.5% for its second negative week in a row. The Dow also declined 1.8%, while the Nasdaq underperformed, cratering 4.9%.
The 10-year U.S. Treasury yield declined by 10 basis points to about 1.42% on Friday, after rising above 1.6% during Thursday's trading session, spooking investors as outlooks became more fearful towards inflation.
Meanwhile, U.S. consumer spending rose in January by 2.4%, according to fresh data from the Commerce Department on Friday; its first increase in three months. Additionally, personal incomes increase by 10%, while the savings rate jumped 20%.
Moveover, Consumer sentiment rose slightly in February to 76.8, according to the University of Michigan's Surveys of Consumers final reading for the month, above the 76.4 expected and preliminary estimates of 76.02, and down from the 79.0 reading in January.
"Despite a small gain in late February, consumer sentiment was slightly lower for the entire month than in January. All of February's loss was due to households with incomes below $75,000, with the declines mainly concentrated in future economic prospects. The worst of the pandemic may be nearing its end, but few consumers anticipate the type of persistent and robust economic growth that restores employment conditions to the very positive pre-pandemic levels," said Richard Curtin, surveys of consumers chief economist, in a statement.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
For Stocks, megacap tech stocks swung higher on Friday, with Amazon
For Sector Performance, sectors on the S&P 500 ended Friday's session mostly lower, with only Information Technology
For Commodities and Currency, the U.S. Dollar
For the week ahead, market participants will focus on headlines surrounding the fate of the $1.9 trillion coronavirus stimulus package that the House is set to approve later Friday.