S&P 500, Nasdaq advance after volatile week

Following a volatile week, Wall Street concluded with muted activity on Friday. The S&P 500 suffered a nominal weekly decline, while the tech-focused Nasdaq rose above its Friday finish. The Dow Jones Industrial Average experienced its biggest weekly percentage drop since March.

Markets were driven by the anticipation of the Federal Reserve's interest rate hike, followed by the outcome of that decision. Semiconductor stocks boosted both the Nasdaq and S&P 500, but broader weakness led to the Dow's decline. Chuck Carlson, CEO of Horizon Investment Services, stated that many investors are cautious, uncertain about both short-term and long-term implications of the Fed's actions.

Inflation concerns persisted, with crude oil prices surpassing $100 per barrel. However, they softened after Iran requested Saudi Arabia to limit attacks on their oil infrastructure. Oil price volatility has pushed diesel prices to record highs, leading to potential inflationary effects on farming and shipping costs.

Global central banks have been tightening policies to combat inflation caused by the Iran war. The Bank of Japan raised interest rates to a 31-year high, following the Fed and European Central Bank. The Bank of England held rates steady but projected future increases. Projections indicate a 55.4% chance of another Fed rate hike at their October meeting, up from 42.5% last Friday.

The Dow Jones fell 95.40 points (0.18%) to 51,682.64, the S&P 500 gained 12.74 points (0.17%) to 7,650.50, and the Nasdaq Composite increased 104.25 points (0.40%) to 26,522.55. Technology stocks led the S&P 500's gains, while utilities saw the steepest percentage decline. Berkshire Hathaway CEO Warren Buffett announced he would step down as chairman to become chairman emeritus. Cryptocurrency-linked firms Coinbase, Strategy, and Robinhood saw gains between 9.1% and 16.4% as Bitcoin prices rose 5.9%.