Bitcoin Surges Past $77k as Stocks Rise Amid Iran Tensions
US stocks rose on Friday as investors looked forward to more details on President Trump's 'economic warfare' plan against Iran. The Dow Jones Industrial Average (^DJI) increased by 0.8%, while the S&P 500 (^GSPC) added 0.4%. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) gained 0.4% after a day of losses on Thursday.
The stock market had been headed for weekly losses due to a bond sell-off this week, which put pressure on capital-intensive AI and tech names like Nvidia (NVDA) and SpaceX (SPCX). However, relief came when Treasury Secretary Scott Bessent announced plans to expand bond buybacks and increase the program's size beyond $4 billion per issue.
Bessent stated that 'part of it is signaling here to show that we believe yields don't reflect the underlying fundamentals.' Despite initial optimism in the bond market, markets viewed this measure as a limited fix. Treasury yields snapped back to previously held higher levels.
Investors are now awaiting Bessent's press conference on Monday for further details on the US plan to economically isolate Iran. Trump had threatened 'TREMENDOUS Economic Consequences' for any country that trades with Iran, particularly targeting China. The Fed's Jackson Hole Symposium and Nvidia's second quarter earnings next week will also be closely watched.