US Stocks Rise Amid Bond Worries as Dalio Warns of Debt Crisis

The US stock market saw gains on Friday despite rising bond yields and concerns about debt stability. The S&P 500 rose by 0.4% led by materials, while the Nasdaq 100 ended a five-day losing streak with a 0.3% increase.

Concurrently, Bitcoin and gold prices surged, indicating ongoing market uncertainty. Billionaire hedge fund founder Ray Dalio issued a warning to investors, advising them to reduce bond holdings and allocate up to 15% of their capital to gold as protection against a potential US debt crisis within three years.

The yield on the benchmark US 10-year note increased by 3 basis points to 4.73%, fueling worries about the stability of the debt market. Analysts offered varied perspectives, with some arguing that bond market turbulence is not a reason to reduce equity exposure and others warning that a failure to tame long-term bond yields could lead to a US dollar slump.

US business activity showed its fastest growth in over four years, contributing to the broader equity market gains. The release of the Reserve Bank of Australia's latest meeting minutes on Tuesday and July CPI figures on Wednesday are expected to influence domestic markets.