Wall Street tumbles, Treasury yields gain as focus turns to Fed
NEW YORK - U.S. stocks ended sharply lower and Treasury yields headed higher on Friday as plunging chip stocks and mixed economic data dampened investors' risk appetite, providing a downbeat ending to a tumultuous week.
On the economic front, data released on Friday was mixed, with import prices jumping, industrial production beating expectations and University of Michigan consumer inflation expectations cooling. "There's a tug of war going on between those who think inflation and interest rates are going to come down and the Fed is going to start cutting rates next year, and those who believe that inflation is going to stay well above the Fed target for a while and therefore rates will stay higher for longer," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.