NEW YORK, April 9 — The Dow rose and the S&P 500 ended lower in choppy trade yesterday, as beaten-down bank shares gained and investors grappled with how best to deal with an economy that could skid as the Federal Reserve moves to aggressively tackle inflation.
Since peaking at two-month highs in late March, the market has trended lower as the Fed signals it will aggressively hike rates, leading investors to reposition their portfolios. Economically sensitive value shares this year have outperformed tech-heavy growth stocks, which often depend on low rates.
The Russell 1000 Value index rose 0.51 per cent while the Russell 1000 Growth index fell 1.09 per cent on the day. Big US banks, which kick off the first-quarter results season next week, are expected to report a large decline in earnings from a year earlier, when they benefited from exceptionally strong dealmaking and trading.
The Dow Jones Industrial Average rose 137.55 points, or 0.4 per cent, to 34,721.12, the S&P 500 lost 11.93 points, or 0.27 per cent, to 4,488.28 and the Nasdaq Composite dropped 186.30 points, or 1.34 per cent, to 13,711.00.For the week, the S&P fell 1.16 per cent, the Dow lost 0.28 per cent and the Nasdaq shed 3.86 per cent, as the index was hit after Fed officials raised concerns about rapid rate hikes causing a slowdown.