On Friday, the dollar mounted to its highest level since 2003 on persistent bets of faster inflation and higher interest rates, while Treasuries continued a selloff that left benchmark yields on track to post their steepest two-week increase in 13 years, as reported by news source Reuters. A growing insight that the economic policies of U.S. President-elect Donald Trump will lift consumer prices pushed the dollar higher, weighing on crude and other commodities. Next month will be big for the Federal Reserve as Janet Yellen will be releasing the decision of whether to raise rates or not (December 13-14).
On Wall Street, tech and biotech Nasdaq Composites hit a record intraday high before falling. The Dow industrials and S&P 500 were also near record highs despite the day's decline.
"I think given the major indexes are at or near all-time highs, we're probably due for a little bit of a digestion period," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management. "Equities are generally expected to move sideways until we get a little more of visibility into what some of the policies are going to be with the new administration."