Stocks fell on Friday as Wall Street’s summer rally appeared to falter, putting the S&P 500 and Nasdaq Composite on pace toward a week of losses.
The S&P 500 fell 1.15%, while the Dow Jones Industrial Average dipped 270 points, or 0.8%. The Nasdaq Composite slid 1.75%.
For the week, the S&P 500 was last down 1.03%, while the Dow was 0.11% higher. The tech-heavy Nasdaq is currently down more than 2% for the week.
The pause in Wall Street’s summer rally came as minutes from the Federal Reserve’s July meeting and comments from St. Louis Federal Reserve President James Bullard seemed to indicate that the central bank would continue hiking rates in the near term, putting a damper on investors’ hopes of a slowdown.
“We certainly know that the Federal Reserve is committed to raising interest rates to bring inflationary pressures down,” Invesco’s Brian Levitt told CNBC’s “Squawk on the Street” on Friday. “What the market has been focusing on in recent weeks — or really since the middle of June — is a slowing economic environment, inflationary pressures coming down … and so we’ve had a bit of a valuation adjustment as interest rates have come down.”
In other news, Bed Bath & Beyond shares cratered after Ryan Cohen dumped his entire stake in the retailer. The move seemed to sour sentiment among meme stock traders who have bet big on the stock in recent months.
Meanwhile, about $2 trillion worth of options contracts are set to expire on Friday, which could lead to increased volatility in the market as some holders may be forced to move into their positions.