Stocks open higher on Wall Street as banks, health care lead

NEW YORK Stocks fell in morning trading on Wall Street Friday, as investors weighed the latest updates about inflation expectations, consumer spending, and corporate earnings.

A report indicating that U.S. consumers have raised their expectations for future inflation has sent a signal to the Federal Reserve to keep raising interest rates aggressively to temper stubbornly high inflation. This strategy increases the risk of a recession.

The S&P 500 fell 1% as of 10: 35 a.m. Eastern, giving up an early gain of 1.2%. The Dow Jones Industrial Average fell 117 points, or 0.4%, to 29,920 and the Nasdaq fell 1.3%. The market was volatile this week, especially after a government report revealed that inflation remains extremely hot. After a steep morning loss, major U.S. indexes made a dramatic recovery on Thursday.

Investors are looking for signs that the Fed might ease up on interest rate increases. Although inflation is cooling in certain areas, it remains stubbornly high overall. A University of Michigan survey on Friday revealed that consumers still feel confident despite high prices for a wide range of goods. After the Michigan report,

Bond yields rose. The yield on the 10-year Treasury, which influences mortgage rates, rose to 3. 99% was 3. 86% shortly after the report was published. The yield on the 2-year Treasury fell to 4. 45% from 4.47%.

Wall Street also reviews the most recent earnings reports to get more insight into how companies deal with inflation.

There were a few bright spots on the market, including several large banks. JPMorgan Chase rose 2.1% following reporting earnings and revenue that exceeded Wall Street forecasts. After reporting strong revenue, Wells Fargo saw a 2.9% increase.

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

Technology stocks were biggest weights on the market and offset gains elsewhere. The sector has many companies with high stock values that can have a significant impact on the wider market. Chipmaker Nvidia fell 4.5%.

U.S. U.S. Chevron fell 2%.

A government study showed that sales at U.S. retailers were unchanged in September compared to August. This was due to rising rent and food prices, which eroded money available for other purchases. The report was worse that economists expected.

Markets in Europe were more stable after Liz Truss, the British Prime Minister, abandoned a plan to reduce corporation taxes. This was a key component of an economic plan that caused weeks of market turmoil and political chaos.