Wall St rebounds, but yield surge sets stage for weekly losses
The main U.S. stock indexes rose on Friday after a drubbing in the previous session, though markets were still on track to end the week lower as elevated government bond yields and geopolitical tensions weakened risk tolerance. The S&P 500 and the tech-heavy Nasdaq were set to snap a three-week winning streak, while the Dow was headed for a second consecutive weekly loss and its steepest weekly…
U.S. stock markets managed a rebound on Friday, following a sharp decline the day before. However, the surge set the stage for a weekly downturn as soaring government bond yields and tensions overseas dampened investors' appetite for risk. The S&P 500 and Nasdaq were poised to end the week lower, while the Dow Jones was expected to post its second consecutive weekly loss and its steepest weekly decline since mid-March.
Financial stocks, led by JPMorgan Chase and Goldman Sachs, lifted the market, with the S&P 500 banking index rising 1.1%. Meanwhile, tech giants Meta and Tesla experienced gains, while crypto exchange Coinbase Global surged 9.5%. Meanwhile, 30-year Treasury bond yields hit a 19-year high, intensifying worries about mounting government debt, higher borrowing costs, and persistent inflation.
U.S. Treasury Secretary Scott Bessent's announcement of potential additional Treasury repurchases triggered a brief respite, but market analysts noted that it was only a temporary measure. Despite the market's temporary relief, economists predict that the market will return its focus on the potential of artificial intelligence and its impact on corporate earnings.
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