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S&P 500 slides as investors fret about interest rates

STORY: Stocks ended mixed on Friday as investors worried that inflation and a resilient U.S. job market could put the Federal Reserve on pace for more interest rate hikes.

The Dow edged up four tenths of a percent, while the S&P shed about three tenths of a percent and the Nasdaq slid more than half a percent.

The see-saw session on Wall Street followed economic data this week that pointed to elevated inflation, a tight job market and resilience in consumer spending, giving the Fed more room to raise borrowing costs.

Hans Olsen is Chief Investment Officer of Fiduciary Trust.

"Well, I think what's happening today in markets, the pressure's being driven from basically a changing narrative around where the terminal rate will be for Fed funds. [FLASH] I think ultimately where we land, the terminal rate, will be somewhere around, at the end of the day, somewhere between 4 and half to 5 and a half percent. And what that really means is that the terminal rate will have to be above the inflation rate."

Shares of mega-caps Microsoft and Nvidia fell, both weighing on the S&P 500 as the yield on 10-year Treasury note hit a three-month high.

Moderna fell more than 3% after its experimental messenger RNA-based flu vaccine delivered mixed results in a study.

Shares of Deere & Company surged 7.5% after the world's largest farm equipment maker raised its annual profit forecast and beat quarterly earnings expectations.

And Tesla was the most traded company in the S&P 500, with shares rising more than 3%.