NEW YORK (AP) — Stocks are mixed on Friday, and Wall Street is heading for its first losing week in the last four as investors brace for the Federal Reserve to press the brakes on the economy more aggressively to beat down inflation.

The S&P 500 was 0.1% higher in afternoon trading after earlier drifting between small losses and gains. The Dow Jones Industrial Average was up 244 points, or 0.7%, at 34,828, as of 2 p.m. Eastern time. Technology stocks were again lagging the market, dragging the Nasdaq composite down 0.8%.

The S&P 500 remains on track for a loss of 1% this week. Stocks have slumped as the Federal Reserve swings more aggressively toward fighting inflation by raising short-term interest rates and making other moves. It’s a sharp reversal from keeping rates at record lows to stimulate the economy and carry it through the pandemic.

Investors learned this week that the Fed may hike short-term rates by double the usual amount several times at upcoming meetings, and that it came very close to doing so last month. The last time that happened was in 2000. The Fed also indicated in the minutes from its last meeting that it’s likely to shrink its massive stockpile of bonds by up to $95 billion monthly, starting as soon as next month.

Altogether, the moves should make it more expensive for U.S. households and businesses to borrow, which would in turn slow the economy and hopefully halt the hottest inflation in 40 years.

On Wall Street, higher rates particularly hurt stocks seen as the most expensive. That’s because higher rates mean better returns for owning relatively safe bonds, which makes investors less willing to pay higher prices for riskier assets like stocks.

That’s why big technology and other high-growth stocks have led the market lower recently. Apple, Nvidia, Tesla and Amazon were among Friday’s heaviest weights on the market, with each dropping at least 1.1%.

Worries are also rising about he strength of the economy. With the Federal Reserve set to raise rates so aggressively, the fear is that it will squeeze the brakes so hard that it will force the economy into a recession. While that’s not the consensus on Wall Street, economists at Deutsche Bank earlier this week said they project a U.S. recession by late next year.

The war in Ukraine has made things more uncertain by threatening to worsen inflation and damage the global economy. Prices for oil, gas and food have been particularly volatilesince Russia invaded the country.

A barrel of benchmark U.S. crude rose 1.2% to $97.19 on Friday. It has swung wildly in recent weeks and briefly topped $130 last month. Brent crude, the international standard, added 1% to $101.58 per barrel.

Much of the market’s focus has been on the bond market, where expectations for more aggressive Fed action have sent yields to their highest levels in three years. The 10-year yield climbed to 2.70% from 2.65% late Thursday. It was at just 1.51% at the start of the year.

It could be set to rise further as the Fed not only halts but reverses its program to buy trillions of dollars of bonds.

The bond buying helped prices for stocks and other financial assets to soar and markets to stay relatively calm, Chief Investment Strategist Michael Hartnett wrote in a recent BofA Global Research report.

Now the Fed is less than a month away from reversing that, which “by design will be negative” for financial assets, Hartnett said. He said it should lead to higher bond yields and higher volatility in markets.

Meanwhile, COVID-19 continues to squeeze the economy around the world, particularly in China. Shanghai residents face severe restrictions on movement and activities because of a surge in infections, with economic effects rippling around the world.

ACM Research, a supplier of equipment for the semiconductor industry that has offices and production facilities in Shanghai, said the restrictions will cause a significant hit to its revenue. The stock fell 5.8%.

A jump in COVID-19 cases is also behind airline disruptions in Europe. Two major airlines, British Airways and easyJet, canceled about 100 flights Wednesday. The industry is suffering from staff shortages because of the virus.

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AP Business Writer Yuri Kageyama contributed.