All three major U.S. stock indexes rise
Services strength and bargain hunting support sentiment
Bitcoin surges 22% in a week
U.S. stocks rebounded after a one-day slide even as long-term Treasury yields continued to climb. Bargain hunters moved in after the recent market pullback eased valuation pressure, while solid U.S. services-sector data helped revive investor sentiment.
On Aug. 21, the Dow Jones Industrial Average rose 517.80 points, or 0.98%, to 53,277.01. The S&P 500 gained 33.21 points, or 0.43%, to 7,674.37. The Nasdaq Composite added 113.29 points, or 0.44%, to 26,180.46.
All three indexes had fallen the previous session before bargain buying fueled a rebound. Treasury yields moved higher again early in the day, however, keeping investors on edge.
Treasury Secretary Scott Bessent had suggested on Aug. 20 that the government could expand Treasury buybacks, but worries over the fiscal deficit and inflation persisted. The 30-year Treasury yield rose 1 basis point to 5.28% on Aug. 21. The benchmark 10-year Treasury yield climbed 3 basis points to 4.73%.
U.S. services data provided support for equities. S&P Global's flash August services PMI business activity index rose 2.2 points from the previous month to 56.8. That marked the biggest monthly increase in 20 months, signaling the services sector remained in expansion.
Despite the day's rebound, the major indexes all posted weekly losses. The S&P 500 fell 1.4% for the week, the Nasdaq dropped 2.1%, and the Dow lost 0.8%.
Oil prices rose for a sixth straight session on concerns that Middle East tensions could disrupt supply. The U.S. warned it would impose economic sanctions on countries trading with Iran, adding to concerns that crude supply could tighten. For the week, October Brent futures rose 6.63%, while U.S. West Texas Intermediate gained 6.86%.
The dollar weakened slightly. The dollar index, which measures the greenback against six major currencies, fell 0.05% to 98.83. As the dollar softened, buying flowed into alternative assets including cryptocurrencies and gold. Bitcoin climbed to around $77,000, nearing the $80,000 level, and has surged about 22% over the past week.
Crypto-related stocks also advanced. Coinbase jumped 8.2% and Robinhood soared 14%. Spot gold rose 2.2% to $4,615.65 an ounce.
Investors are now focused on next week's major economic and corporate events. The Federal Reserve's Jackson Hole policy symposium is scheduled for next week, along with a speech by Chair Kevin Warsh and the release of July personal consumption expenditures inflation data. Earnings reports from Nvidia and other major Big Tech companies are also due.
Hong Min-seong, Hankyung.com reporter, mshong@hankyung.com