US markets closed mostly lower; Nasdaq ekes out

The US markets closed mostly lower on Friday, with the S&P 500 falling after reaching an all-time high as investors weighed comments from central bank leaders for clues to monetary policy amid rising geopolitical tension. The markets slumped to session lows in between on fresh Ukraine-Russia reports which stated that NATO viewed a buildup of Russian forces near Ukraine as alarming, and the organization condemned the entry of a Russian convoy into Ukraine. Federal Reserve Chairwoman Janet Yellen, at her speech at the annual gathering of central bankers in Jackson Hole, Wyoming, stated that the economy is getting closer to the Fed’s goals of full employment and stable inflation, and the debate at the central bank is naturally shifting to when to raise interest rates. Balancing this more hawkish tone, Yellen added that the unemployment rate decline overstates the improvement in overall labor market conditions.

Meanwhile, Mario Draghi stated that the European Central Bank is ready to add more stimulus and called on governments to do more to help the euro-area economy. Draghi’s call for politicians to play their part in safeguarding the euro-area recovery comes as pressure mounts on the ECB for radical measures such as quantitative easing. One year after the end of the currency bloc’s longest-ever recession, the economy has stalled, unemployment remains near a record high and inflation is the weakest in almost five years.

Separately, Fed Bank of St. Louis President James Bullard stated in an interview that the US central bank may begin tightening monetary policy earlier than officials previously expected, while Atlanta Fed President Dennis Lockhart urged more patience.

The Dow Jones Industrial Average lost 38.27 points or 0.22 percent to 17,001.22, the S&P 500 ended lower by 3.97 points or 0.20 percent to 1,988.40, while the Nasdaq edged up 6.45 points or 0.14 percent to 4,538.55.

The Indian ADRs closed mostly in green on Friday; Infosys was up by 0.62%, Dr. Reddy’s Lab was up by 0.07% and Tata Motors was up 0.02%. On the other hand, HDFC Bank was down by 0.47% and ICICI Bank was down by 0.34%.