US Stocks Rebound on Friday as Crypto Assets Surge
US stocks rose on Friday despite increasing bond yields, as crypto assets led the market higher. The Dow jumped by 1%, while the S&P 500 and Nasdaq gained 0.4% each.
The surge in US business activity in August contributed to the rebound, with private sector growth hitting a four-year high. According to S&P Global's flash manufacturing, services, and composite PMIs, the US economy is experiencing its fastest pace of growth since 2018.
The price of Bitcoin jumped by 6% to $77,000, marking its first move above $70,000 since late May and its best weekly performance in years. The Treasury's announcement of increased long-term bond buybacks was seen as a key driver of the surge in crypto prices.
Meanwhile, Nvidia shares fell after reports that the chip giant is in talks to invest hundreds of millions of dollars in Cloverleaf Infrastructure. Despite this decline, most global stock indices ended the week in the red due to elevated yields and rising crude oil prices.