The Dow and S&P 500 finished a choppy session higher Friday, but with the main U.S. equity indexes still booking a weekly loss as doubts emerged about the staying power of a rally sparked by signs of easing U.S. inflation. The Dow Jones Industrial Average rose about 200 points, or 0.6%, ending near 33,747 Friday. The S&P 500 index closed up 0.5%, but failed to end above the 4,000 mark after trading above that level several times intraday in past sessions this week. The Nasdaq Composite Index eked out a 0.01% gain Friday. Stocks wobbled earlier this week after St. Louis Federal Reserve President James Bullard said the central bank’s rate could end up as high as 7%, up from the current 3.75% to 4% range. Higher rates make it more expensive for households and businesses to borrow. This tightening cycle differs from the recent past in that the central bank has been raising rates into what appears to be a slowing economy, with economists and investors seeing the risks of recession increasing as the Fed tightens the screws of financing conditions. The Dow ended the week flat, while the S&P 500 posted a 0.7% weekly decline and the Nasdaq shed 1.6%, according to FactSet. Stocks have ended lower in two of the past three weeks. The 10-year Treasury rate fell for two straight weeks, and it pegged near 3.817% Friday ahead of the shortened holiday week for Thanksgiving.
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