US Stocks End Week Lower Amid Yields & Mideast Tensions
By Market Desk
US stocks logged weekly declines despite a Friday rally, pressured by rising bond yields and Middle East geopolitical risks. Key economic data and earnings ahead.
Major US stock indexes finished Friday’s session higher, yet recorded overall weekly declines. This market volatility stemmed primarily from fluctuating government bond yields and ongoing developments in the Middle East.
The S&P 500 and Nasdaq Composite ended a three-week winning streak, while the Dow Jones Industrial Average marked its second consecutive weekly fall. Investor sentiment was also shaped by the prospect of higher borrowing costs.
Friday’s Market Performance
- The S&P 500 gained 0.43%, closing at 7,674.10 points.
- The Nasdaq Composite rose 0.43%, reaching 26,179.37.
- The Dow Jones Industrial Average climbed 0.99% to 53,280.14.
- Most S&P 500 sectors advanced, with materials notably outperforming.
US Treasury Secretary Scott Bessent’s announcement of increased bond repurchases influenced market movements during the week. Positive economic data on Friday, which indicated strong growth in the US services sector, helped alleviate some concerns.
This services sector strength partially offset a slowdown in manufacturing, which was attributed to supply disruptions from the Iran war. UBS Global Wealth Management subsequently raised its year-end target for the S&P 500, citing a positive earnings outlook.
Inflationary Pressures and Stock Movers
Rising oil futures heightened inflation worries, with Brent and US crude futures posting significant weekly gains. This surge was fueled by threats of sanctions on Iran’s trading partners.
- Ross Stores rallied after raising annual profit forecasts and reporting robust quarterly results.
- Retail investor platform Robinhood, crypto exchange operator Coinbase Global, and bitcoin-hoarder Strategy all saw sharp gains.
These individual stock movements occurred as bitcoin advanced, contributing to broader market interest in the digital asset space. Investors are now tracking several key upcoming events.
Upcoming Economic and Earnings Focus
Attention will turn to upcoming quarterly results from major tech companies, including Nvidia, Intuit, Salesforce, and CrowdStrike. Further economic insights are expected from July’s Personal Consumption Expenditures price index.
Additionally, Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium is anticipated to provide further guidance on monetary policy and economic outlook.