Dow Jumps 500 Points as Investors Snap Up Shares After Thursday's Sell-Off

U.S. stocks staged a significant rebound on Friday, August 21, as investors snapped up shares after Thursday's sharp decline. The Dow Jones Industrial Average climbed 500.32 points, or 0.95%, to 53,259.53, while the Nasdaq Composite rose 85.81 points to 26,152.98 by 2:45 p.m. ET.

The previous day's sell-off was driven by rising long-term Treasury yields and surging oil prices due to escalating U.S.-Iran tensions. However, on Friday, bargain hunting across a range of attractively valued stocks led the recovery.

Goldman Sachs, Cisco Systems, and Merck paced the Dow's advance, while Coinbase Global posted sharp gains in crypto-related trading. Treasury Secretary Scott Bessent signaled that per-auction buyback caps for long-term Treasuries could exceed $4 billion, underscoring efforts to curb rising yields.

Despite this effort, upward pressure on rates persisted, leaving investors cautious about the sustainability of the recovery. Market attention remains focused on next week's PCE inflation data and Fed Chair Warsh's keynote address at the Jackson Hole symposium.