Rising Treasury Yields Weigh on US Stock Indices as Bitcoin Surges
US stock indices closed the week lower despite a positive business-activity data report. The S&P 500 rose 0.4% on Friday but ended the week lower, breaking a three-week win streak. The Nasdaq 100 and Dow Jones Industrial Average also climbed higher on Friday but finished the week in the red.
The surge in long-duration Treasury yields was a major factor in the decline of US stock indices. The U.S. 30-year Treasury yield rose for the second straight week, primarily due to the Treasury Department's plan to buy back bonds. This move weighed heavily on risk sentiment and contributed to the downward trend.
Bitcoin extended its winning streak to five consecutive days, jumping as much as 9.4% to top $79,000. The strong rally in Bitcoin was attributed to the Treasury's move to buy back bonds at the longer end of the yield curve. This liquidity expansion has historically been positive for the cryptocurrency.
Some key stocks that saw notable movements include Paramount Skydance (PSKY), Nvidia Corp. (NVDA), and Walmart (WMT). Strategy Inc. (MSTR) also gained as its massive Bitcoin holdings moved back into unrealized profit.