NEW YORK: Stock markets wobbled and oil prices sank on Friday amid growing fears that inflation-fighting interest rate hikes by central banks could trigger recession.

Investors were shaken this week after the US Federal Reserve unleashed its biggest hike in borrowing costs for almost 30 years to tackle red-hot consumer prices.

The third Fed increase was followed by the fifth straight hike by the Bank of England and the first in 15 years by the Swiss central bank, underscoring the growing global concerns about inflation.

The moves caused a global selloff on Thursday. US and European markets tried to stage a rebound on Friday, but some indices were back in the red later in the day.

On Wall Street, the Dow Jones Industrial Average ended back under 30,000 points while the broad-based S&P 500 eked out a positive close and the tech-heavy Nasdaq rose 1.4 percent.

But the S&P lost 5.8 percent for the week, its worst performance since 2020.

European markets seesawed, with London finishing in the red, Paris almost flat and Frankfurt closing higher.

“Sentiment has been shattered and equities could suffer further,” Craig Erlam, an analyst at online trading platform OANDA, told AFP.

Karl Haeling of LBBW agreed, saying “markets are oversold, but probably not oversold enough to call for a bottom.”

He said the modest gains Friday likely mark “a little technical pause.”

Sentiment turned sour again as US official data showed industrial production in May had risen by just 0.2 percent, much slower than April and weaker than expected.

“We see that the positive attempts get rapidly killed as the market prices in a higher recession risk as inflation doesn’t ease,” Ipek Ozkardeskaya, analyst at Swissquote bank, told AFP. Asian stock markets mostly closed lower Friday.