Financial Markets                      09/18 16:08

   

   NEW YORK (AP) -- Wall Street capped an up -and- down week Friday with a 
mixed finish for U.S. stock indexes, as elevated bond yields and oil prices 
weighed on the market.

   The S&P 500 inched 0.2% higher after drifting between modest gains and 
losses for much of the day. The benchmark index also posted its second straight 
weekly loss.

   The Dow Jones Industrial Average slipped 0.2%, and the Nasdaq composite 
added 0.4%.

   The majority of stocks on Wall Street fell, and helping to weaken them was 
rising pressure from the bond market. The yield on the 10-year Treasury climbed 
to 5% from 4.94% late Thursday after it topped the 5% level early this week for 
the first time since 2023.

   Higher yields slow the overall economy by making it more expensive for 
everyone to borrow money, from the U.S. government to people looking to buy 
houses to businesses wanting to build AI data centers. They also tend to 
undercut prices for stocks and other investments.

   Yields have been climbing in a long march since the COVID pandemic knocked 
them nearly to zero in 2020. The ascent has accelerated recently because 
inflation has remained stubbornly high for years.

   Inflation is well above 3% by several measures. It worsened due to higher 
oil prices caused by the war with Iran.

   The price for a barrel of Brent crude, the international standard, got to 
nearly $110 early this week, up from a little over $70 in July. It has been 
seesawing since.

   It briefly dropped below $102 in overnight trading before erasing much of 
the loss and settling at $103.87, down 0.9% from the day before.

   Rising oil prices have pushed gasoline prices to $4.47 per gallon, up from 
$3.20 per gallon a year ago, according to AAA. That is tightening the squeeze 
on household budgets. Diesel prices are at a record $6.45 per gallon and that 
has a more direct impact on shipping costs for everything from groceries to 
clothing.

   High inflation has been raising expenses for everyone, and more companies 
are giving details about how much.

   Steel maker Nucor said late Thursday that it expects to report an increase 
in profit from its steel mills business in the third quarter from the second 
because it's able to charge higher prices. But it's also having to absorb 
higher costs. It gave a forecast for overall profit in the third quarter that 
fell short of analysts' expectations, and its stock sank 6.3%.

   Berkshire Hathaway edged up 0.1% after famed investor Warren Buffett said 
he's giving up his role as chairman of the company. Buffett already gave up his 
role as CEO of the company, where he built a reputation for buying stocks at 
relatively cheap prices and being patient with his investments.

   Elsewhere on Wall Street, General Motors fell 5.1% and Qualcomm dropped 5.8%.

   Among stocks that gained ground were Coinbase Global, which climbed 11.7% 
for the biggest gain among S&P 500 stocks, and Robinhood Markets, which climbed 
9.1%.

   All told, the S&P 500 rose 12.74 points to 7,650.50. The Dow dropped 95.40 
points to 51,682.64, and the Nasdaq added 104.25 points to 26,552.55.

   In stock markets abroad, indexes slumped across Europe, including drops of 
1.5% for the CAC 40 in Paris and 1.5% for London's FTSE 100.

   Asian indexes did better. South Korea's Kospi jumped 2.7%, and Japan's 
Nikkei rose 1.4%.

   The Bank of Japan raised its benchmark interest rate in a widely expected 
move, up to its highest level in 31 years. It followed the Federal Reserve, 
which raised its federal funds rate earlier this week for the first time in 
three years in efforts to rein in high inflation.

   "With consumer spending resilient, the AI buildout continuing, and the labor 
market solid, the Fed was running out of reasons to stay on the sidelines after 
more than five years of above-target inflation," said Angelo Kourkafas, senior 
global strategist, investment strategy, at Edward Jones.

   The Fed's move could keep upward pressure on Treasury yields, particularly 
because officials suggested they may need to hike the federal funds rate again 
this year. But it also helped strengthen faith that the Fed would do what's 
necessary to get inflation back to its 2% target. That's even if it causes pain 
for the economy in the short term and upsets President Donald Trump, who has 
been calling for lower interest rates.

   ___

   AP Business Writer Yuri Kageyama contributed to this report.

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