The S&P 500 struggled to find footing in Friday’s volatile trading after a rogue sell-off that pushed the S&P 500 to its lowest level since 2020.

The Dow Jones Industrial Average fell 120 points (0.4%) while the leading index remained near the flat line. The tech-heavy Nasdaq Composite rose 0.3%.

Investors wrap up a brutal month and quarter on Friday. His 2.1% drop in the S&P 500 on Thursday marked his 49th drop of more than 1% this year and marked the biggest downside volatility since 2009. According to Charlie Birello of Compound AdvisorsFor the month, the index is down about 8%, the Dow about 7% and the Nasdaq about 3%.

On the corporate front, Carnival (CCL) shares plunged 20% to their lowest since 1993 after the cruise company reported annual bookings and quarterly guidance that disappointed Wall Street.

Nike (NKE) also made a move on Friday after reporting a 44% surge in inventories and outlining other macroeconomic headwinds that weighed on the fourth quarter. Shares plunged 11%, even as earnings met expectations and the company reaffirmed its full-year sales guidance.

Shares of semiconductor maker Micron Technology (MU) rose about 2%, even as the company warned of tough times for demand for PCs and smartphones and said it was cutting back on investments. However, Micron expects strong revenue growth in the second half of fiscal 2023, and expects demand to recover by that point.

In an economic release, the Federal Reserve’s favorable inflation indicator showed prices rose more than expected in August. The Personal Consumption Expenditures (PCE) price index rose 0.3% last month after setbacks in July. On a yearly basis, the PCE price index he rose 6.2%. The so-called core PCE price index, which excludes the volatile food and energy components of the measure, rose 4.9% year-on-year in August from his 4.7% rise in July.

Meanwhile, the Department of Commerce reported on Friday that consumer spending rose 0.4% last month after falling 0.2% in July.

After the Bank of England’s abrupt policy change to resume bond purchases earlier this week, US investors offered fleeting hopes that the Federal Reserve would follow suit and ease the pace of its aggressive monetary stance. The odds of a moderate rate hike of 50 basis points at the central bank’s November meeting on Thursday topped 50% as traders pushed the hawkish Fedspeak and unemployment claims to their lowest in five months. As we evaluated it, it fell back to about 40%.

US Federal Reserve Chairman Jerome Powell arrives to host event

US Federal Reserve Chairman Jerome Powell arrives to host an event on “Fed Listens: Transitioning to a Post-pandemic Economy” in Washington, USA, September 23, 2022. REUTERS/Kevin Lamarque

In an interview with CNBC on Thursday, Cleveland Federal Reserve Bank Governor Loretta Mester vowed she and her peers would maintain restrictive policies until inflation subsided, pledging UK market turmoil to the US situation. distinguished from

“It is very important that markets work, because without markets we cannot achieve our monetary policy objectives,” Mester said. “It’s not the same as worrying about market volatility,” he said, adding that so far there has been no dysfunction in U.S. markets.

And on Friday, Fed Vice Chairman Lael Brainard hinted that the central bank would keep interest rates high even in the face of continued high inflation.

“Monetary policy needs to be restrictive for some time to get confidence that inflation is back on target,” she said in a prepared remark in a speech at a conference in New York. We promise to avoid a premature withdrawal from

Alexandra Semenova is a reporter at Yahoo Finance. follow her on her twitter @alexandraandnyc

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