US stocks ended a volatile week mixed on Friday: the S&P 500 edged up 0.17% to…

US stocks ended a volatile week mixed on Friday: the S&P 500 edged up 0.17% to 7,650.50 and the Nasdaq rose 0.39% to 26,522.55, while the Dow slipped 0.18% to 51,682.64, posting its third straight losing week (down 1.7%), its worst since March. The week was dominated by the Federal Reserve's decision Wednesday to raise its benchmark rate by 25 basis points (a basis point is 1/100th of a percentage point) to 3.75%-4%, the first hike since 2023 and the first under new Fed Chair Kevin Warsh, as officials work to contain inflation stoked by Gulf-conflict oil prices. Stocks rallied Thursday as oil prices and Treasury yields eased, with chip stocks leading gains, but Friday saw yields climb again on growing bets of a second Fed hike as soon as October, capping the rebound. Separately, Berkshire Hathaway was in focus after Warren Buffett announced he's stepping down as chairman to become chairman emeritus, with his son Howard Buffett taking over as chairman.

The PSEi tumbled 1.72% (102.73 points) Friday to close at 5,855.91, its lowest level in more than three and a half months, as rising Treasury yields, elevated global oil prices, and a weaker peso all weighed on investor appetite. Local short-term yields climbed on expectations the Bangko Sentral ng Pilipinas (BSP, the Philippine central bank) could follow the Fed's latest hike, while a rebalancing of the FTSE Philippines index added extra selling pressure, according to Regina Capital's Luis Limlingan. Sentiment was further dampened by expectations of a sharp increase in domestic gas prices next week. The peso weakened to ₱62.749 per US dollar, snapping two days of recovery and staying under pressure toward the ₱63 level. Mining and oil was the sole sector to gain (+1.65%), while services led the declines (-2.53%). Trading stayed heavy at ₱15.10 billion in turnover, with losers outnumbering gainers 117 to 79.

The Fed's 25-basis-point hike to 3.75%-4% under new Chair Kevin Warsh, its first increase since 2023, is pushing global bond yields higher, and that's flowing straight into the Philippines. The BSP has already raised its own rate by a cumulative 75 basis points since April to 5%, and Ateneo economist Leonardo Lanzona expects another quarter-point hike as soon as October. Even with that rate edge over the Fed, analysts say it isn't enough alone to shield the peso, which weakened toward the ₱63-per-dollar level amid the same Gulf-conflict oil price surge driving global inflation. The sectors most exposed are capital-intensive ones sensitive to a "higher for longer" rate environment, real estate, utilities, infrastructure, and telecoms, according to Globalinks Securities' Toby Allan Arce, while banks with strong deposit bases could hold up comparatively better. One thing worth watching: whether the BSP waits until its scheduled October meeting or is forced into an off-cycle move if the peso keeps sliding.