NEW YORK, New York - U.S. stocks extended losses on Friday after a huge sell-off a day earlier in the day, which saw the Dow Jones industrials shed 1,063 points, while the Nasdaq fell 4.99 percent.
On Friday losses were more limited but investors remained cautious after the Fed's half-percentage interest rate increase on Wednesday and the possibility of even more aggressive moves in the future.
CNBC quoted Barclays strategist Emmanuel Cau as saying in a note to clients that the relief rally in equities and bonds post the less hawkish than feared' Fed on Wednesday was short-lived.
The implied policy tightening cycle ahead is still very hawkish, even though aggressive 75 bp hikes may be off the table. If surging inflation quickly reverses its course, watch US CPI print next Wednesday and central banks may have no other choice but slowing growth to stay credible. The Nasdaq Composite was down by 173.03 points or 1.40 percent at 12,144 at the close of Friday. The Dow Jones industrials fell by 98.60 points or 0.30 percent to 32,899. The Standard and Poor's 500 fell 25.53 points or 0.57 percent to 4,123. The U.S. dollar was firm on Friday. The euro went up a bit to 1.0546 near the New York close. The British pound was on the defensive at 1.2340. The Japanese yen has softened to 130.54. The Swiss franc was slightly weakened to 0.9885.
Germany's Dax fell 1.64 percent on overseas equity markets. The Paris-based CAC 40 lost 1.73 percent. The FTSE 100 in London was down 1.54 percent.
The Australian All Ordinaries slid 175.00 points or 2.29 percent to close Friday at 7,464. In New Zealand, the S&P NZX 50 dropped 138.22 points or 1.18 percent to 11,609. The Shanghai Composite plunged 66.20 points or 2.16 percent to 3,001 in mainland China. The Hang Seng fell by 791.44 points or 3.81 percent to 20,001 in Hong Kong. The Nikkei 225 advanced by 185.03 points or 0.69 percent to close Friday at 27,003.