US stocks: US market rises on the day but falls for the week; bond yields and Iran in focus
Major U.S. stock indexes finished Friday higher, but recorded weekly declines. Investors reacted to fluctuating government bond yields and Middle East developments. Stronger services sector growth offset manufacturing slowdowns, easing some investor concerns. Oil futures settled higher for a sixth consecutive day, adding to inflation worries. Upcoming economic data and Fed Chair's speech will…
U.S. stock markets experienced a mixed performance on Friday as investors reacted to fluctuating bond yields and geopolitical tensions in the Middle East. The S&P 500 and Nasdaq Composite indexes both closed higher, but the Dow Jones Industrial Average recorded its second consecutive weekly decline. The week's volatility was driven by investors' sensitivity to U.S. government bond yields, with higher borrowing costs dampening risk appetite.
Treasury Secretary Scott Bessent indicated that the government could increase its Treasury repurchases, providing some relief to market participants. The economic data for August highlighted robust growth in the services sector, offsetting a slowdown in manufacturing, which was affected by supply disruptions from the Iran conflict.
Despite this, investor concerns about inflation rose, as oil prices surged for the sixth consecutive day, driven by potential U.S. sanctions on Iran's trading partners. For the week, the S&P 500 gained 32.94 points (0.43%), the Nasdaq Composite rose 112.20 points (0.43%), and the Dow Jones Industrial Average increased 520.93 points (0.99%).
Among individual stocks, Ross Stores reported better-than-expected quarterly results, while tech-focused companies like Coinbase Global and Strategy benefited from a surge in bitcoin prices. Looking ahead, investors will closely watch quarterly earnings reports from Nvidia and other software companies, as well as the July Personal Consumption Expenditures price index, which is expected to provide insights into inflation trends.
Additionally, Federal Reserve Chair Kevin Warsh's speech at the upcoming Jackson Hole symposium will be a key focus for market participants.
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