Traders work on the floor of the New York Stock Exchange during morning trading on August 5, 2026 in New York City.
Michael M. Santiago | Getty Images
of S&P500 Stocks rose on Friday as investors tried to find their footing after a sharp selloff caused by rising U.S. Treasury yields.
The market-wide index rose 0.4%; Nasdaq Composite. of Dow Jones Industrial Average It rose 501 points (1%), supported by gains in healthcare stocks such as . Merck and johnson & johnson.
The financial sector boosted the overall market, with crypto-related stocks showing a significant rise. Bitcoin It was on track for a 23% gain for the week. robin hood The stock price rose 13%, but coinbase Added 7%. Materials also outperformed, rising 2% on the day.
Wall Street is emerging from a losing market as U.S. Treasury yields resume rising following government efforts to stem the decline in the U.S. bond market. Bonds, especially long-term bonds, are under pressure as investors worry about rising inflation due to rising oil prices.
Thursday’s pullback put the S&P 500 index on track to end its three-week winning streak as it heads down more than 1%. The Nasdaq is down 2% and looking to end a three-week winning streak, while the Dow is down nearly 1% this week, trending toward weekly declines.
This week’s economic downturn has also affected stocks outside the U.S., with the MSCI All Country World Index on track to drop almost 1% for the week.
Leo Kelly, founder and CEO of Verdence Capital Advisors, believes that following the recent market selloff, if U.S. Treasury yields continue to rise and tensions in the Middle East persist, stocks could fall further, especially into correction territory in the fall.
On Friday, long-term interest rates added to the gains seen in the previous session, 10 year treasury The note yield rose more than 3 basis points to 4.732%. of 30 year treasury Bond yields also rose by more than 3 basis points to 5.273%.
“The market is correcting to 4% to 5%,” Kelly said of the 10-year Treasury yield. “If some event were to occur and the market would break out and the 10-year rate would be in the 6% to 7% range, that would be a problem and the market would react badly to that.”
As yields rise, investors will look to Federal Reserve Chairman Kevin Warsh’s speech at next week’s Jackson Hole Economic Policy Symposium for further clarity on this and other areas such as central bank independence.
