<p>It was a tough one for US equities this week and it ended on a soft note after a back-and-forth session. Today’s hot PPI number and better UMich sentiment raised some questions about whether Fed hikes are working enough to cool inflation and whether Powell could take a hawkish stand next week. I think he’s instead going to push the idea that the Fed will hold rates high for longer rather than the U-turn that’s priced into Fed funds.</p><p>In any case, expect some even bigger moves next week.</p><p>On the day:</p><ul><li>S&P 500 -0.75%</li><li>Nasdaq -0.7%</li><li>Russell 2000 -1.0%</li></ul><p>On the week:</p><ul><li>S&P 500 -3.4%</li><li>Nasdaq -4.0%</li><li>Russell 2000 -4.9%</li></ul>

This article was written by Adam Button at www.forexlive.com.