Wall Street Mixed as Treasury Yields Rise After Fed Hike

Wall Street traded mixed on Friday as investors paused after the strongest session in more than a month, while rising U.S. Treasury yields and quadruple witching kept market volatility in focus. Quadruple witching marks the simultaneous expiration of several types of derivatives contracts and can trigger heavier trading volumes.

At 15:28 ET, the S&P 500 was nearly unchanged at 7,641.00, while the Nasdaq Composite gained 0.2% to 26,474.62. The Dow Jones Industrial Average slipped 0.2% to 51,698.39.

Markets continued to digest the Federal Reserve’s first interest rate increase in more than three years. The Federal Open Market Committee unanimously raised the federal funds rate by 25 basis points to 3.75%-4.00%, while updated projections and comments from Fed Chair Kevin Warsh signaled a hawkish policy stance.

Treasury yields resumed their climb Friday, with the benchmark 10-year yield rising 6.1 basis points to 5.008% after reaching a more than 19-year high earlier in the week. The S&P 500 remained about 2% below its latest record close as investors searched for the next market catalyst.

Oil prices, meanwhile, declined for a third consecutive session as concerns over supply disruptions eased. Markets were encouraged by hopes that Saudi Arabia could partially restore flows through its damaged East-West Pipeline and by signs of potential diplomatic progress involving Washington and Tehran.

Artificial intelligence safety also remained in focus after several prominent industry figures raised concerns about risks associated with advanced AI systems. California Governor Gavin Newsom responded by convening experts to consider stronger AI safety measures.

Separately, Warren Buffett announced he would step down as Berkshire Hathaway chairman while remaining a director and becoming chairman emeritus. Howard Buffett will take over the chair position.