Dow rises 250 points as US stocks rebound, but indexes eye weekly losses

• The 30-year Treasury yield hit its highest level since 2007 this week and remained elevated despite announced government buyback plans of at least $4 billion in long-term debt, raising concerns about financing costs and inflation
• Tech and crypto stocks provided strength as Nvidia earnings loom next week and President Trump called for a major crypto bill, lifting Coinbase 5.8%, Strategy 4.3%, and Robinhood 5.8%
• UBS Global Wealth Management raised its year-end S&P 500 target to 8,100 citing expectations for stronger earnings, while markets await the August PMI data and next week's PCE inflation report

Market Summary

Market Performance:

U.S. stocks rebounded Friday with the Dow Jones rising 255 points, while the S&P 500 and Nasdaq gained 0.37% and 0.34%, respectively. Despite the recovery, major indexes remained on track for weekly losses: S&P 500 down 1.9%, Nasdaq down 2.5%, and Dow lower by 1.8%, marking its second consecutive weekly decline.

Treasury Yields Concern:

Long-dated Treasury yields remained near multi-year highs, with the 30-year yield hitting its highest level since 2007 earlier in the week. The Treasury Department announced plans to purchase at least $4 billion in longer-term debt (10-, 20-, and 30-year securities), with potential for increased buybacks. Elevated yields continue pressuring equities by reducing stock attractiveness and raising borrowing costs.

Geopolitical Impact:

U.S. sanctions on Iran kept geopolitical tensions elevated, supporting oil prices despite Friday's modest decline. Higher energy costs pose inflation risks and complicate Federal Reserve policy decisions.

Sector Highlights:

Technology stocks showed strength, with Alphabet up 0.25% and Tesla rising 0.97%. Nvidia's upcoming quarterly earnings report will be closely watched for AI sector direction. Crypto-related stocks surged after President Trump urged Congress to pass major cryptocurrency legislation: Coinbase gained 5.8%, Strategy rose 4.3%, and Robinhood advanced 5.8%. Ross Stores climbed 3.8% on improved profit guidance.

Upcoming Catalysts:

Investors await Fed Chair Kevin Warsh's Jackson Hole speech, August S&P Global PMI data, and next week's PCE inflation report for monetary policy insights. UBS Global Wealth Management raised its year-end S&P 500 target to 8,100, citing strong earnings expectations.