Stocks closed lower on Friday as market participants looked ahead towards the Federal Reserve's policy-setting meeting next week amid concerns over interest rate hikes pushing the U.S. economy into a recession. The Dow Jones Industrial Average dropped over 300 points, while the S&P 500 and Nasdaq Composite each declined about 0.7%.
Here's how the market settled to close out the week:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Friday's session was driven by mixed economic data on the day, as market participants weighed higher-than-expected producer prices and optimistic consumer sentiment as they looked for clues on the central bank's next moves.
Major averages ultimately fell for the week, with the Dow losing 2.77% to post its worst week since September, while the S&P 500 tumbled 3.37% and the Nasdaq dropped almost 4%.
November's producer price index (PPI) rose by 0.3% month-to-month, and 0.4% when excluding more volatile food and energy prices, both topping economist expectations for 0.2% for each reading. On an annual basis, producer prices rose 7.4%.
Separately, December's preliminary consumer sentiment reading came in stronger-than-expected on Friday, rising to 59.1 from the 57 print reported last month, according to data from the University of Michigan.
"Gains in the sentiment index were seen across multiple demographic groups, with particularly a large increase for higher-income families and those with larger stock holdings, supported by recent rise in financial markets," said Joanne Hsu, director for the Surveys of Consumers, in statement.
Offering another negative towards the health of the U.S. economy, RH
"It's just a lot of uncertainty right now," Friedman said. "But one thing I'm certain of: The housing market is collapsing at a level I haven't seen since 2008. I haven't seen this kind of drop since 2008."
Friedman's comments come as national sales of previously owned homes fell for a record ninth straight month in October as rising mortgage rates continue to impact the market. New home construction is also declining, with residential housing starts decreasing 4.2% in October to a 1.43 million annualized rate, according to government data.
In other news, shares of Lululemon
Heading into next week, all eyes will be on November consumer price data due out Tuesday. The Federal Reserve will also deliver its final monetary policy decision for 2022 on Wednesday, followed by remarks from Fed Chair Jerome Powell Wednesday afternoon.
