U.S. stock indexes closed lower Friday, capping another punishing week for growth and technology stocks as investors await a Federal Reserve update next week on how aggressively interest rates may rise and financial conditions tighten to tame inflation. The Nasdaq Composite Index led the three stock benchmarks lower Friday, ending down 2.7%, but off 7.6% for the week, which was its worst weekly decline since March 2020, according to Dow Jones Market Data. The Nasdaq also entered correction territory mid-week, commonly measured as at least a 10% decline from its recent record close, and recorded its worst start to a year through Friday since the 2008 global financial crisis. Rising 10-year Treasury yields, up about 25 basis points near 1.74% this year, also have pressured speculative stocks and total returns of riskier assets. The S&P 500 index tumbled 1.9% Friday and 5.7% for the week, while the Dow Jones Industrial Average fell 1.3% for the session and 4.6% for the week, pulled lower in part by jitters about pinched margins as major banks kicked off fourth-quarter earnings.
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