The S&P 500 slipped Friday and is on track to close out a losing week, as Treasury yields climbed back above 5% and a weaker-than-expected economic reading added to the pressure. The Dow Jones Industrial Average is heading for its third straight losing week, while the Nasdaq Composite remains the lone major average on pace for a weekly gain.
The S&P 500 dropped 0.2% on Friday. The Dow Jones Industrial Average shed 244 points, or 0.5%, while the Nasdaq Composite traded near the flatline.
The pullback comes even after stocks rebounded Thursday from Wednesday's Federal Reserve meeting, where policymakers approved their first interest rate hike in three years, with a signal of at least one more increase this year.
Treasury yields climb back above 5%
The 10-year Treasury yield rose back above 5%, last up more than 5 basis points at 5.004%, after touching its highest level since July 2007 earlier in the week.
Crude oil added to the pressure. West Texas Intermediate futures rose 1% to around $103 a barrel, while Brent crude futures traded marginally lower above $104.
A weak economic signal
The Conference Board's index of leading economic indicators fell 0.1% in August, missing economists' forecast for a 0.1% rise. The gauge, which tracks ten forward-looking measures including building permits and unemployment claims, had risen 0.2% in July.
A mixed week for the major averages
The Dow is down 2% this week, on pace for its third straight losing week. The S&P 500 is lower by 0.5% week-to-date. The Nasdaq Composite is the only major average set to post a weekly gain, up 0.3%.
Sources: CNBC, Investor's Business Daily
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