World stocks ended the week lower as rate hike guidance from the European Central Bank and the release of hotter-than-expected U.S. consumer price index (CPI) data for May took its toll on financial markets.
All three major U.S. indices closed the week higher, with each rising higher than 6% to close their best week since November 2020.
U.S. stocks recorded another week of losses as investors are becoming increasingly doubtful that the Federal Reserve will be able to achieve a “soft landing” for the economy by raising rates enough to reel in inflation without causing a recession.
On Wednesday, the United Nations General Assembly overwhelmingly voted to reprimand Russia for invading Ukraine and demanded that Moscow stop fighting and withdraw its military forces.
Stock market volatility continued this week despite recording positive gains.
All eyes were on the U.S. this week as the Fed’s monetary policy committee held their January meeting.
Wall Street's main indexes ended sharply lower for the week, the technology-focused Nasdaq posted its worst week since 2020, after dropping nearly 7.5% in the holiday-shortened week as government bond yields surged with the benchmark 10-year Treasury yield trading above 1.9% during the week. The Dow Jones Industrial Average slipped roughly 4.6%, while the S&P 500 is down about 5.7% for the week.
Market volatility continued into the second week of 2022, with inflation concerns at the forefront.