Investing.com – U.S. stocks closed mostly lower on Friday, weighed by a slump in energy, after oil prices sunk as Irma hurled towards Florida while a dip in treasuries amid falling expectations of an additional rate hike this year capped gains in financials.
The Dow Jones Industrial Average closed higher at 21,797. The S&P 500 closed 0.15% lower while the Nasdaq Composite closed at 6360.19, down 0.59%.
Financials rebounded from yesterday’s days’ slump which saw shares of Goldman Sachs (NYSE:GS), Bank of America, Citigroup (NYSE:C) closed more than 1% lower but gains were limited as treasury yields continued to tumble, reflecting a fall in investor expectations of an additional rate hike this year.
Higher interest rates are seen as boon for banks, boosting net interest margin – the difference between the interest income generated by banks and the amount of interest paid out to their lenders.
A slump in energy, however, overshadowed gains in Financials after crude prices dropped more than 3% on Friday as traders continued to monitor the impact of Hurricane Irma on oil demand.
On the New York Mercantile Exchange crude futures for October delivery fell more than 3% to settle at $47.48 a barrel.
Meanwhile concerns over renewed geopolitical uncertainty on the Korean peninsula added to the risk off sentiment on Wall Street, as traders fear North Korea may launch another missile on Saturday to celebrate its 69th anniversary of the founding of the Democratic People’s Republic of Korea.
"Investors don't want to go into the weekend when North Korea is scheduled to show its military prowess during the Founders day celebration without their hedges in place," said Quincy Krosby, chief market strategist at Prudential Financial.
'Bulls and Bears' on Wall Street
The top Dow gainers for the session: The Travelers Companies Inc (NYSE:TRV) up 4%, Home Depot Inc (NYSE:HD) up 1.3% and Bank of America Corp (NYSE:BAC) up 1.2%
Apple Inc (NASDAQ:AAPL) down 4.4%, Wal-Mart Stores Inc (NYSE:WMT) down 1.5% and Intel Corporation (NASDAQ:INTC) down 1%, were among the worst Dow performers of the session.