U.S. stock indices rebounded Friday after a sell-off tied to rising Treasury yields, but the S&P 500, Nasdaq Composite and Dow Jones Industrial Average still headed for weekly declines. Crypto-related stocks led the bounce as bitcoin headed for a weekly gain of around 20%.
Indices claw back Thursday's losses
The S&P 500 rose 0.5% on Friday, matched by a 0.5% gain in the Nasdaq Composite. The Dow Jones Industrial Average climbed 401 points, or 0.8%, lifted by gains in healthcare stocks Merck and Johnson & Johnson.
Financials also drove the rebound, as crypto-linked shares rallied alongside bitcoin, and materials outperformed, up 2% on the day.
Bitcoin's surge lifts Robinhood and Coinbase
Bitcoin was on track for a weekly gain of around 20%, last trading at $75,343.01, up from $62,836.88 at the start of the week. Robinhood shares jumped 13%, while Coinbase added 8%.
Investor sentiment improved largely due to a last-ditch push from the White House and crypto industry leaders to get the Clarity Act through Congress in the coming weeks. Elsewhere, Broadcom shares gained nearly 1% after Bloomberg News reported, citing sources, that the chipmaker was planning to raise over $60 billion in debt for a deal to support Anthropic.
Rising yields still threaten a third weekly index decline
Despite Friday's bounce, the S&P 500 is on track for a decline of more than 1% this week, while the Nasdaq is off nearly 2% and the Dow has fallen around 1%. The pullback came as the 10-year Treasury yield gained more than three basis points to 4.732% on Friday.
Leo Kelly, founder and CEO of Verdence Capital Advisors, said the 10-year yield has already priced in a new range: "The market has adjusted to 4% to 5%". He added that equities could slide toward correction territory this fall if yields keep climbing and Middle East tensions persist.
Sources: US Top News and Analysis, US Top News and Analysis
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