U.S. stock market's three major indices close lower amid concerns over rising interest rates

U.S. stock market's three major indices close lower amid concerns over rising interest rates

The three major U.S. stock market indices closed lower on Friday, led by losses in the technology sector. The Dow Jones Industrial Average fell 0.6%, the S&P 500 lost 0.9%, and the Nasdaq Composite dropped 1.6%. The declines came as investors grew increasingly concerned about the Federal Reserve's plans to raise interest rates. The Fed is widely expected to raise rates by a quarter-point at its next meeting in March, and some investors are worried that the central bank could raise rates more aggressively than expected in the coming months. Rising interest rates can make it more expensive for companies to borrow money. This can lead to lower corporate profits and slower economic growth. As a result, investors are often hesitant to buy stocks when interest rates are rising. In addition to concerns about interest rates, investors were also worried about the ongoing war in Ukraine and its potential impact on the global economy. The war has already led to higher energy prices and disruptions to supply chains. These factors could weigh on corporate profits and economic growth in the coming months. Despite the concerns, the U.S. stock market has managed to remain relatively resilient. The S&P 500 is still up about 10% from its lows in June 2022. However, the market is likely to remain volatile in the coming months as investors continue to assess the impact of rising interest rates, the war in Ukraine, and other global events.