NEW YORK: Wall Street’s main indexes fell on Friday in the final stretch of a turbulent week, as investors digested shifting oil prices, higher Treasury yields and a Federal Reserve rate hike.
The quarterly expiration of derivatives contracts tied to stocks, index options and futures, known as “triple witching,” also threatened to exacerbate volatility.
Nine of the 11 major S&P 500 sector indexes were lower, and the materials index led losses with a 1.3 percent decline.
The interest rate hike from the Federal Reserve and Chair Kevin Warsh’s commentary on the future trajectory of borrowing costs has kept investors busy this week.
“We expect more volatility ahead as markets digest the move,” said Motley Fool Asset Management’s Chief Investment Strategist Bill Mann. “In this environment, staying invested in the highest-quality companies gives investors the best chance to weather the turbulence and capitalize on the opportunities it creates.”