The stock market rise came to a halt on Friday, with all three main U.S. averages trading sideways for the day, as Treasury yields and the dollar gained in response to hawkish Fed remarks and a stronger-than-expected University of Michigan consumer sentiment index readout.

Fed Governor Christopher Waller said it is disturbing that core inflation is not moving, which will probably require some more tightening. Richmond Fed President Thomas Barkin said he is open to more rate hikes if warranted by data. This was enough to quell some market risk appetite and generate upward pressure in Treasury yields.

Cues From Friday's Trading:

The S&P 500, the Nasdaq 100 and the Dow Jones Industrial all ticked marginally up, while small cap stocks in the Russell 2000 index underperformed, falling 0.8% for the session.

U.S. Indices’ Performance on Friday

Friday Trading In Major US Equity ETFs: In midday trading on Friday, the SPDR S&P 500 ETF Trust (NYSE:SPY) was 0.1% lower to $441.80, the SPDR Dow Jones Industrial Average ETF (NYSE:DIA) was flat at $344.37 and the Invesco QQQ Trust (NASDAQ:QQQ) was 0.1% higher to $370.68, according to Benzinga Pro data.

Defensive outperformed cyclical sectors, while value outperformed growth.

The Utilities Select Sector SPDR Fund (NYSE:XLU) was the top performer for the day, up 1.1%, followed by the Consumer Staples Select Sector SPDR Fund (NYSE:XLP), up 0.6%.

Latest Economic Data:

The University of Michigan's preliminary consumer sentiment index revealed a higher-than-expected increase in June. The overall index came in at 63.9, up from 59.2 in May and above expectations of 60. Year-ahead inflation expectations tumbled from 4.2% to 3.3%, the lowest since March 2021.

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Stocks In Focus:

Commodities, Bonds, Other Global Equity Markets:

Crude oil ticked 0.4% higher, with a barrel of WTI-grade crude trading at $71. The United States Oil Fund ETF (NYSE:USO) was 0.5% higher to $63.73 per share.  

Treasury yields rose, with the 10-year yield up by 6 basis points to 3.78% and the two-year yield up by 9 basis points to 4.74%. The iShares 20+ Year Treasury Bond ETF (NYSE:TLT) was 0.4% lower for the day. 

The dollar gained, with the U.S. dollar index, which is tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), up 0.3%. The EUR/USD pair, which is tracked by the Invesco CurrecyShares Euro Currency Trust (NYSE:FXE), was 0.1% lower to 1.0930.

European indices traded higher across the board. The SPDR DJ Euro STOXX 50 Etf  (NYSE:FEZ) rose 0.5%, reaching its highest levels since January 2022.  

Staff writer Piero Cingari updated this report midday Friday. 

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