US Stock Market: DJIA, S&P500 and Nasdaq red in early trade on Friday

US Stocks edged lower in morning trading on Wall Street Friday as investors weighed the latest updates on inflation expectations, consumer spending, and corporate earnings.

A report on US consumers raised their expectations for future inflation hurt markets worldwide, offering another signal the Federal Reserve may have to continue aggressively raising interest rates to control stubbornly high inflation. The strategy raises the risk of a recession.

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The S&P 500 fell 51.42 points or 1.40% to 3,618.49 as of 10:23 am Eastern Time. The Dow Jones Industrial Average fell 206.11 points or 0.69%, to 29,832.61. The Nasdaq Composite fell 180.06, or 1.69% to 10,469.09.

The market has been volatile throughout the week. A government report on Thursday showed that inflations remain significantly high. Major US indexes recorded their biggest comeback in years on Thursday in a reversal from steep morning losses.

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Investors have been looking for insights that could allow the Fed to ease up on its interest rate increases. According to a survey from the University of Michigan on Friday, consumer confidence remains surprisingly strong despite high prices on a wide range of goods.

Bond yields surged after the Michigan report. The yield on the 10-year Treasury, which helps determine mortgage rates, rose to 3.99% from 3.86% shortly before the report was released. The yield on the two-year Treasury, which often tracks expectations for future Fed action, slipped to 4.45% from 4.47%.

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Wall Street is also watching the latest earnings report for more clues about how companies are dealing with inflation.

Several major banks were among the biggest gainers in the market. JPMorgan Chase rose 2.1% after reporting earnings and revenue that topped Wall Street forecasts. Wells Fargo surged 2.9% after it report strong revenue growth.

UnitedHealth Group jumped 2.1% after raising its profit forecast for the year.

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Technology shares were the heaviest weights on the broader market and offset gains elsewhere. Many companies in the sector have expensive stock values that can have a large impact on the broader market. Chipmaker Nvidia tumbled 4.5%.

US crude oil prices slipped 2.8% and weighed down energy stock. Chevron lost 2%.

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A government report on US retailers showed that the pace of sales was unchanged in September from August as soaring prices for rent and food chipped away at the money available for other things. The report was worse than economists’ expectations.