Stocks fell on Friday, dragging markets lower at the end of a dismal week.
The S&P 500 fell 1.1 percent, adding to the steep loss in the previous day’s trading session and eroding gains Monday and Tuesday. The slide took the week’s decline above 2 percent, marking the first time the S&P has fallen in two straight weeks since September. The reference index has fallen by more than 19 percent over the course of the year.
Wall Street has been wary of the impact central bankers’ determination to fight inflation could have on the economy. Officials at the Federal Reserve, European Central Bank and Bank of England raised interest rates again this week, saying they are determined to tighten further until high prices are brought under control.
The yield on the two-year US Treasury bond remains well above that of the 10-year equivalent, a so-called inverted yield curve that many see as a reliable sign of a recession.
On Friday, one of the Fed’s most senior officials said the central bank was getting closer to setting interest rates high enough.
“We’re well on our way there,” John Williams, the president of the Federal Reserve Bank of New York, told Bloomberg Television. “We’re coming to a better place.”
Elsewhere, the Stoxx 600 in Europe fell about 1.3 percent and the FTSE 100 in London fell 1.3 percent. In Asia, Hong Kong’s Hang Seng rose 0.4 percent and Tokyo’s Nikkei 225 fell 1.9 percent.
West Texas Intermediate crude, the US benchmark, fell 2.4 percent to $74.29 a barrel.
Jeanna Schmalek contributed reporting.