- Disappointing corporate results and the threat of fast interest-rate hikes weighed on morale, and equities in the United States declined for the third week in a row.
- The S&P 500 index fell 2.8%, the most since March 7, bringing the benchmark index to a weekly loss for the first time since January. The tech-heavy Nasdaq 100 has down more than 9% in April, putting it on track to have its worst month since 2008. Meanwhile, the CBOE volatility index, or VIX, the market's so-called fear indicator, surged to a one-month high. Since June 2020, the dollar has risen to its highest level.
- Traders have upped their bets on the Federal Reserve tightening policy after Chairman Powell detailed his most aggressive strategy to managing inflation yet this week, potentially recommending two or more half-point rate hikes. Late Friday, markets briefly recovered from session lows as Fed's Mester argued against hiking interest rates by 75 basis points in a single meeting, preferring a "methodical approach."
- According to interest-rate swaps, money markets priced in 200 basis points of tightening by the Fed's September decision. That means a half-point increase in May, June, July, and September, which hasn't happened since 2000.
- European equities joined the selloff on Friday, as conflicting financial data on the continent and further tightening signals from the European Central Bank weighed on risk appetite.