S&P 500, Nasdaq advance after volatile week

Wall Street wrapped up a turbulent week with muted results on Friday as US Treasury yields exceeded 5%. The tech-heavy Nasdaq and S&P 500 rose, while the blue-chip Dow Jones declined its most since March. The week was divided into anticipation prior to the Federal Reserve's anticipated interest rate hike and the consequences of that decision.

Semiconductor activity lifted the Nasdaq and S&P 500, but the broader Dow suffered losses. Chuck Carlson, CEO of Horizon Investment Services, noted that investors were uncertain about the immediate and long-term impacts of the Fed's actions and were cautious about positioning for Monday's trading. Oil prices, which surged above $100 per barrel, kept inflation worries on the forefront, as higher oil prices contributed to record diesel levels and potential inflation in farming and shipping costs.

Central banks worldwide have been tightening policies to combat inflation, with the Bank of Japan hitting a 31-year high and the Bank of England holding steady with warnings of future hikes. Fed rate hikes are now seen as likely at the October meeting, with a 55.4% probability according to CME's FedWatch tool. The Dow Jones dipped 95.40 points (0.18%) to 51,682.64, the S&P 500 rose 12.74 points (0.17%) to 7,650.50, and the Nasdaq Composite climbed 104.25 points (0.40%) to 26,522.55.

Technology stocks led the S&P 500's gains, while utilities suffered the biggest percentage drop. Berkshire Hathaway CEO Warren Buffett will transition to chairman emeritus, and Xenon Pharmaceuticals' shares fell 30.7% after halting enrollment in clinical trials due to side effects. Cryptocurrency-linked firms experienced gains, with Coinbase increasing by 9.1% and Robinhood up 16.4% as Bitcoin prices rose 5.9%. Declining issues outnumbered advancers on both the New York Stock Exchange and Nasdaq.