The S&P 500 rose Friday as stocks clawed back part of Thursday's sell-off, but the index still heads into the weekend down for the week, snapping a three-week winning streak. Rising Treasury yields, driven by inflation worries tied to higher oil prices, remain the main drag on equities.
The S&P 500 climbed 0.5% on Friday, clawing back part of Thursday's sell-off. But the gain leaves the index on track for a weekly decline of more than 1%, which would snap a three-week winning streak.
Dow and Nasdaq join the rebound
The Dow Jones Industrial Average rose 401 points, or 0.8%, supported by gains in healthcare stocks such as Merck and Johnson & Johnson. The Nasdaq Composite climbed 0.5% alongside the S&P 500.
The rebound follows a rough Thursday, when the Dow tumbled 700 points, the S&P 500 lost 0.9% and the Nasdaq fell 1%, rattled by President Trump's threat of economic sanctions against Iran.
Treasury yields keep the pressure on
Longer-dated yields extended their climb Friday, with the 10-year Treasury note gaining more than three basis points to 4.732%. Leo Kelly, founder and CEO of Verdence Capital Advisors, warned equities could slide further this fall if yields keep rising. According to CNBC: "The market has adjusted to 4% to 5%" on the 10-year yield, he said.
Global markets close out a tough week
The strain reached beyond Wall Street. Japan's Nikkei slipped Friday, bringing its weekly loss to almost 4%, its biggest weekly drop since mid-July. Europe's STOXX 600 was set for its biggest weekly fall since early July, down nearly 1%, while the dollar hovered near three-month lows as investors weighed elevated inflation and fiscal pressure tied to the growing U.S. debt pile.
Sources: CNBC, Investor's Business Daily, Reuters
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