Bitcoin Surges Past $77K as US Stock Indexes Climb Despite Tech Sector Weakness

Major US stock indexes posted gains on Friday, despite weakness in the tech sector. The Dow Jones Industrial Average climbed 0.7%, the S&P 500 advanced 0.4%, and the Nasdaq increased 0.3%. Meanwhile, Bitcoin surged to $77,000, its strongest weekly gain in nearly three years.

The technology sector weighed on growth indexes, with semiconductor and artificial intelligence infrastructure equities retreating after an initial uptick. The tech component of the S&P 500 was heading towards its sixth straight daily decline, the longest negative streak since September 2022. Shares of Nvidia and Apple faced downward pressure as trading advanced.

Market observers noted no specific trigger for the mid-session reversal, highlighting reduced summer liquidity and portfolio rebalancing as probable factors. The Dow's superior performance stemmed from its price-weighted methodology, with major advancers like Goldman Sachs and Amgen exerting greater influence than weakening technology holdings.

The Treasury market was also under scrutiny, following a bond repurchase program expansion announced by Treasury Secretary Scott Bessent. While the move aimed to communicate that current Treasury yields don't accurately represent fundamental economic conditions, financial markets showed only brief optimism before Treasury yields rebounded quickly.