U.S. equities closed higher on Friday, wrapping up the week on a relatively positive note. The Nasdaq 100 snapped a five-session losing streak, buoyed by robust U.S. business activity data that lifted investor sentiment. The index advanced 0.3%, while the S&P 500 gained 0.4%.
Technology shares recovered from earlier weekly losses, which had been pressured by a climb in long-term Treasury yields to their highest level since 2007, dampening risk appetite. The fastest pace of U.S. business expansion in over four years also provided a tailwind for the market.
Bitcoin notched a fifth straight day of gains, propelling Strategy Inc. up 6.1% and lifting other cryptocurrency-linked stocks broadly. However, Friday's advance was insufficient to prevent the S&P 500 from posting a weekly decline, as oil prices and bond yields rose throughout the week.
The Treasury Department's expanded bond buyback program, aimed at curbing long-term yields, emerged as a key catalyst for market movements this week. Mark Malek, chief investment officer at Muriel Siebert & Co., noted that "the market's reversal indicates investors are focused on the fundamental factors driving yields higher, rather than the Treasury's repurchase operations themselves."
Treasury Secretary Bessent is slated to unveil further details of the department's plan at a Monday press conference, which could help traders gauge the future trajectory of yields. Meanwhile, Fed Chair Warsh is scheduled to speak later next week at the Jackson Hole global central bank symposium, potentially offering additional clues on interest rate policy.
AI trading faces a significant test as Nvidia is set to report earnings after the market close on Wednesday. By the session's end, the S&P 500 rose 0.4% to 7,674.37 points, the Dow Jones Industrial Average climbed 1% to 53,277.01 points, the Nasdaq Composite advanced 0.4% to 26,180.46 points, the Nasdaq 100 added 0.3% to 29,308.86 points, and the Russell 2000 gained 0.9% to 3,017.871 points.
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