U.S. equities advanced on Friday, capping a volatile week marked by sharp moves in Treasury yields, though the rebound was insufficient to offset earlier losses. The Dow Jones Industrial Average climbed 1%, while the S&P 500 and Nasdaq Composite each gained 0.4% after Thursday's declines.
The major indexes still recorded weekly declines, with the S&P 500 down 1.4%, the Dow shedding 0.8%, and the Nasdaq falling 2% over five days. The pullback followed a bond market sell-off that pressured riskier assets earlier in the week.
Bitcoin surged to $77,000 on Friday, extending its weekly gain to 22%—its strongest performance since November 2024. The rally lifted crypto-linked stocks, with MicroStrategy up 6%, Robinhood gaining 13%, and Coinbase rising 8%.
Treasury Secretary Scott Bessent announced plans to expand the government's bond buyback program beyond $4 billion per issue, aiming to signal confidence in underlying fundamentals. However, 10-year and 30-year Treasury yields quickly reversed gains, snapping back to prior elevated levels as markets deemed the measure a limited solution. The 30-year yield rose to 5.27%, nearing the 5.3% threshold that unsettled investors earlier in the week.
Investors are now focused on Bessent's Monday press conference, where details of the U.S. plan to economically isolate Iran are expected. The strategy follows President Trump's threats of "tremendous economic consequences" for countries trading with Iran, with China—a major importer of Gulf oil—potentially in focus.
The U.S. dollar index slipped to 98.88, its lowest level since May, as the Treasury's bond intervention raised concerns about fiscal risks undermining the greenback. Bank of America strategists anticipate further dollar weakness ahead of midterm elections if the 30-year yield fails to drop below 5%.
Trade talks between the U.S. and Canada are nearing a resolution, with concessions expected across sectors including automobiles, liquor, and dairy. A deal could avert 50% tariffs on Canadian goods, which the U.S. has threatened over alleged discriminatory trade practices. Negotiators described progress as "very close" ahead of Friday's deadline.
BJ's Wholesale Club reported adjusted earnings per share of $1.36, beating estimates by 16 cents, as same-store sales rose 11.9% year over year. CEO Robert Eddy noted the persistence of a "K-shaped economy," with higher-income members driving the majority of growth despite broader consumer resilience.
