US stocks: US market rebounds, but yield surge sets stage for weekly losses

Major U.S. stock indices climbed on Friday, despite higher yields and global uncertainties, signaling a potential weekly decline. The S&P 500 and Nasdaq were set to end the week with a loss, following three consecutive weekly gains. Financial firms led the Friday rally, with JPMorgan Chase up 1.2%, Goldman Sachs 2.3%, and the S&P 500 Banks index 1.1%.

Robinhood and Coinbase Global saw significant gains. Tech companies like Meta and Tesla also rose, but tech stocks faced a weaker weekly performance amid rising bond yields. The 30-year Treasury bond reached a 19-year peak, driven by worries about inflation and debt. Treasury Secretary Scott Bessent's announcement of a possible expansion of the government's bond-buying program brought some relief, but it was short-lived.

Experts say the bond market forecasts stronger growth and higher inflation, limiting the rebound's duration. Amid geopolitical tensions, the U.S. warned of its harshest sanctions against Iran, potentially reducing the need for military intervention. Oil prices rose, but crude dipped on Friday. UBS raised its S&P 500 target to 8,100, citing robust earnings and corporate profit growth.

The August US purchasing managers' index came in below expectations at 53.2. Investors will watch next week's personal consumption expenditures data and Fed Chair Kevin Warsh's address at the Jackson Hole symposium. Nvidia's quarterly results will also be closely followed. On the NYSE, advancing shares outnumbered declining ones 2.45 to 1, while the Nasdaq ratio was 2.23 to 1.

The S&P 500 hit 4 new 52-week highs and 2 new lows, while the Nasdaq Composite recorded 34 new highs and 33 new lows.