Mixed Performance and Bear Market Concerns: US stock markets wrapped up the week with a mixture of outcomes on Friday, as the Dow Jones Industrial Average recorded its most challenging performance since March. Both the S&P 500 and Nasdaq Composite indices marked their third consecutive week of declines. In the meantime, over in Hong Kong, the Hang Seng Index dipped into bear market territory, reflecting growing concerns about China’s economic outlook.

Weekly Declines Amid Bond Yield Surge: During Friday’s trading session, US stocks exhibited a range of results, mirroring the broader trend of losses across major indexes due to an uptick in bond yields. The Dow experienced a decline of over 2% throughout the week, marking its most formidable downturn since March. Simultaneously, the S&P 500 and Nasdaq Composite encountered their third successive week of losses. The backdrop to these weekly declines was the 10-year US Treasury yield, which recently reached its highest point since 2007. This move was spurred by indications that the Federal Reserve remains vigilant about inflation and open to additional interest rate hikes.

China Economic Concerns and Market Moves: Concerns about China’s economic landscape led to substantial market moves. Hong Kong’s Hang Seng Index entered bear market territory, influenced by traders responding to apprehensions about China’s economy and its property sector. Recent Chinese government data underscored deflation, weakening trade figures, and an unstable housing market. A significant event was the Chapter 15 bankruptcy protection filing by China Evergrande, the world’s most heavily indebted developer. As the week concluded, key US indices stood as follows: S&P 500 at 4,369.71 (down 0.01%), Dow Jones Industrial Average at 34,500.66 (up 0.07% or 25.83 points), and Nasdaq Composite at 13,290.78 (down 0.20%).

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