S&P 500 slumps ~4% for the week as Fed's Powell affirms hawkish rate stance

The S&P 500 on Friday posted weekly losses of more than 4%, with the benchmark index ending in the red for two straight weeks now after a period of hefty gains.

The index fell 4.04% for the week, with a chunk of the losses coming today alone after hawkish comments from U.S. Federal Reserve Chair Jerome Powell at the Jackson Hole symposium drove home the fact the policymakers were committed to raising rates and sustaining a period of below-trend growth in order to combat inflation and restore price stability.

On the economic data front, investors also reacted to news through the week, from lower-than-anticipated new home sales data, to stronger-than-expected pending home sales figures, softer-than-predicted durable goods numbers, Q2 GDP estimates and weekly jobless claims.

The SPDR S&P 500 Trust ETF (NYSEARCA:SPY) on Friday lost 3.99% for the week alongside the benchmark index. The ETF is -14.66% YTD.

All 11 sectors in the S&P 500 barring Energy closed in the red for the week, with Information Technology the top loser. See below a breakdown of their weekly performance as well as the performance of their accompanying SPDR Select Sector ETFs from Aug. 19 close to Aug. 26 close:

#1: Energy +4.30%, and the Energy Select Sector SPDR ETF (XLE) +4.25%.

#2: Materials -2.52%, and the Materials Select Sector SPDR ETF (XLB) -1.26%.

#3: Utilities -2.64%, and the Utilities Select Sector SPDR ETF (XLU) -2.56%.

#4: Consumer Staples -3.53%, and the Consumer Staples Select Sector SPDR ETF (XLP) -3.20%.

#5: Health Care -4.06%, and the Health Care Select Sector SPDR ETF (XLV) -4.24%.

#6: Industrials -4.17%, and the Industrial Select Sector SPDR ETF (XLI) -3.36%.

#7: Real Estate -4.48%, and the Real Estate Select Sector SPDR ETF (XLRE) -3.80%.

#8: Financials -5.53%, and the Financial Select Sector SPDR ETF (XLF) -3.55%.

#9: Consumer Discretionary -5.84%, and the Consumer Discretionary Select Sector SPDR ETF (XLY) -4.69%.

#10: Communication Services -6.56%, and the Communication Services Select Sector SPDR Fund (XLC) -4.39%.

#11: Information Technology -7.31%, and the Technology Select Sector SPDR ETF (XLK) -5.56%.

Below is a chart of the 11 sectors’ YTD performance and how they fared against the S&P 500. For investors looking into the future of what’s happening, take a look at the Seeking Alpha Catalyst Watch to see next week’s breakdown of actionable events that stand out.

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