Market responds negatively to Fed rate hike fears

Renewed fears of a US Federal Reserve rate hike following an increase in US inflation led to a sell-off on Wall Street, with the Nasdaq dropping 0.68% on Friday. The tech index recorded a 2.34% weekly decline and ended lower for the second consecutive week, while the S&P 500 fell 0.11% and the Dow Jones rose 0.30% on Friday. Disney, Boeing, Dow Inc, Nike, and Microsoft were among the top losers. The US producer price index for final demand rose 0.3% in July, suggesting the Fed may need to keep rates higher for longer.