Stock Market Today: Stocks Lose Steam as Fed Hangover Lingers
Stocks attempted to bounce back from recent Fed-induced losses Friday, but struggled to stay higher through the close.


Stocks spent most of the day in positive territory Friday as Treasury yields retreated. The major indexes lost steam, however, as investors continued to fret about higher-for-longer interest rates and took in new developments on the United Auto Workers (UAW) strike.
At the close, the Dow Jones Industrial Average was down 0.3% at 33,963, while the S&P 500 (-0.2% at 4,320) and the Nasdaq Composite (-0.1% at 13,211) were also modestly lower. All three indexes ended Friday with substantial weekly losses as concern over the Federal Reserve's future monetary plans sent Treasury yields to a nearly two-decade high.
Specifically, while the Fed on Wednesday kept interest rates unchanged, it left open the door to another quarter-point rate hike this year and indicated it will keep rates higher for longer in order to bring down inflation.

Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Earlier today, Boston Fed President Susan Collins and Fed Governor Michelle Bowman both signaled support for tighter monetary policy to combat still-too-high inflation.
However, Douglas Porter, chief economist, at BMO Economics isn't too worried about more rate hikes. "There's plenty more economic data to go before the next meeting, and new risks are emerging for the growth outlook," Porter says. "Overall, we believe short-term rates are now restrictive enough to do the job, and the pronounced back-up in long-term yields adds another layer of tightening."
Higher prices weigh on PMI data
In today's economic news, purchasing managers index (PMI) data from S&P Global showed activity in the services sector grew at a more moderate pace than was expected. Additionally, activity in the manufacturing sector contracted at a slower rate than economists were anticipating.
"Weighing most on both figures were contractions in ordering, as consumers balked at higher prices," says José Torres, senior economist at Interactive Brokers. "Loftier prices were driven mainly by increases in compensation outlays, interest costs, materials expenses and fuel charges."
Ford stock pops on strike negotiation progress
Meanwhile, the UAW said it expanded its strike to 38 General Motors (GM, -0.4%) and Stellantis (STLA, +0.2%) plants across 20 states. The union said it will not strike at any additional Ford Motors (F, +1.9%) plants for the time being, as negotiations between the two sides are making progress, according to UAW President Shawn Fain.
Next week has the potential to be a volatile one, given it marks the end of both the month and the quarter. The Friday morning release of the personal consumption and expenditures (PCE) index – the Fed's preferred measure of inflation – and increasing chatter surrounding a potential government shutdown could keep investors on their toes.
Related content
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
How to Navigate Your Medicare Advantage Plan in a Disaster
If you're a Medicare Advantage member in an area that has been impacted by a disaster, you might be worried about access to care and medicine. Here's what you need to know.
-
Older Investors: Boost Your Savings and Retire Earlier
This one measure can help older investors retire up to two years earlier and potentially double their retirement savings.
-
What Tariffs Mean for Your Sector Exposure
New, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
How to Invest for a Fall Interest Rate Cut by the Fed
A lot can happen between now and then, but the probability the Fed cuts interest rates in September is back above 80%.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?
Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How the Stock Market Performed in the First 6 Months of Trump's Second Term
Six months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have Today
Berkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have Today
Procter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
My Three-Day Rule for Investing: And If it Applies Now
Stock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?
Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?