Wall Street ends a week in the red as investors fear higher interest rates

Wall Street ended the week lower as investors weighed stronger-than-expected employment data against fears that inflation could keep interest rates elevated. The Dow Jones Industrial Average fell 0.51%, or 271 points, to 53,414 on Friday.

The S&P 500 dropped 0.38% to 7,718, while the Nasdaq lost 0.29% to 26,506. Over the full week, however, the Dow declined 0.27%, the S&P 500 gained 0.09% and the Nasdaq advanced 0.4%.

Markets were unsettled by the resumption of attacks between the United States and Iran on Sunday and by the continuing blockade of the Strait of Hormuz, a major route for global oil supplies. The disruption increased concern that energy costs could keep inflation high for longer and encourage the Federal Reserve to raise interest rates.

Investors demanded higher returns on U.S. government debt, pushing the yield on the 10-year Treasury note during the week to levels not seen since 2023. The yield later eased, but a Labor Department report showing 162,000 jobs were created in August, compared with analysts’ expectation of 53,000, renewed pressure on markets. The unemployment rate held at 4.1%.

The Consumer Price Index report for August, due next Friday, will provide another signal ahead of the Federal Open Market Committee’s next meeting. On Friday, the 10-year Treasury yield rose 2.2 basis points to 4.784%. Gold fell 1.36% to $4,478 an ounce, while silver dropped 1.38% to $66.77. West Texas Intermediate crude gained 0.2% to $91.48 a barrel and rose more than 9.5% over the week.