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Stocks closed the day higher Friday but were still lower on the week, as inflation and growth worries persist. 

The Federal Reserve raised interest rates by 75 basis points on Wednesday, which drove volatile trading on Thursday and sent the major indexes lower for the week. 

Growth-style stocks are outperforming value, but value is still outperforming on year-to-date.

Oil is lower, as pricing is softening demand as supply remains constrained, hovering around $110 per barrel Friday. 

Natural gas prices also were volatile last week, swinging between gains and losses. 

Bond yields were lower, around 3.2 percent on the 10-year Treasury, after briefly moving higher near 3.5 percent earlier in the week.

Recessionary risks are rising, and the probability that the Fed can stamp out inflation without pushing the economy into a recession is getting more challenging. However, there are bright spots providing strong support to growth, namely the labor market, which has been very resilient in the face of higher inflation, and a tight labor market is generally associated with continued consumer spending and economic growth. 

By raising the key interest rate by 75 basis points, or 0.75 percent, the Fed is acknowledging that inflation remains stubbornly high and a key risk to the economy and jobs market. The Federal Reserve is trying to constrain demand by raising the cost of borrowing, and, at least in the housing market, there are signs that the rate hikes are having an effect, with demands for mortgages falling quickly.

Leading equities higher Friday were the real estate and technology sectors as rates fall. Technology has come under pressure this year, as it is acutely exposed to rising rates and higher discount rates on future cash flows. 

Trailing technology is the consumer staples sector, consistent with a “risk-on” sentiment. Edward Jones analysts still slightly favor value-style stocks, as commodity and inflation dynamics play out in the short term.

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