Wall Street rises on the day but falls for the week as bond yields, Iran in focus
The S&P 500 and the tech-heavy Nasdaq snap three-week winning streaks, while the Dow registers its second consecutive weekly loss.
US stock markets experienced a mixed week, concluding with gains on Friday despite showing declines over the week. This week's volatility was primarily driven by fluctuations in government bond yields and uncertainties surrounding Middle East developments. The S&P 500 and Nasdaq tech index both ended the week with smaller declines, while the Dow Jones Industrial Average registered its second consecutive weekly loss.
Investors' decision-making has been influenced by the trajectory of US government bond yields, as higher borrowing costs have dampened risk appetite. Treasury Secretary Scott Bessent indicated a potential increase in Treasury repurchases after surprising bond buyback figures were announced, alleviating concerns about rising yields.
On Friday, economic data revealed robust growth in the US services sector, reversing a slowdown in the manufacturing sector affected by Iran-related disruptions. UBS Global Wealth Management boosted its forecast for the S&P 500 to 8,100, citing improved earnings prospects and strong corporate profits. Despite these positive factors, oil prices continued to rise due to President Trump's threat of economic sanctions on Iran's trading partners, further tightening global supply.
The Dow Jones Industrial Average climbed 0.98% to 53,277.01, the S&P 500 increased 0.43% to 7,674.37, and the Nasdaq Composite advanced 0.44% to 26,180.46. However, the Russell 2000 small-cap index declined 1.65%, marking its largest weekly drop since early June. Among the major S&P 500 sectors, materials led with a 2.2% rise, followed by healthcare and financial stocks, while utilities faced the most significant decline at 2.3%.
Notably, individual stocks such as Ross Stores rose 4.4% after raising profit forecasts and reporting better-than-expected quarterly results, while Robinhood and Coinbase Global surged 13.7% and 8.2%, respectively. The upcoming week will focus on AI chip leader Nvidia and software firms like Intuit, Salesforce, and CrowdStrike. Investors will also look for July's Personal Consumption Expenditures price index, a key inflation indicator, and Fed Chair Kevin Warsh's speech at the upcoming Jackson Hole symposium.
Written by urgent.news from Free Malaysia Today's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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