US Stocks Rally as Treasury Yields Rise Ahead of Fed Speech
The US stock market rebounded on Friday after a sharp selloff tied to rising Treasury yields. The Dow Jones, Nasdaq, and S&P 500 all rose, with the Dow gaining 0.43% to 7,674.37, the Nasdaq up 0.43% to 26,180.45, and the S&P 500 adding 517.80 points or 0.98% to 53,277.01.
The gains were led by healthcare stocks such as Merck and Johnson & Johnson, as well as financials that rallied alongside crypto-linked stocks. Nvidia's recent partnership with six major financial institutions on financing platforms targeting over $500 billion for AI infrastructure underscored the scale of capital needed to build out AI data centers.
Investors are now looking to Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole Economic Policy Symposium for clarity on rates and central bank independence. The speech is seen as an opportunity for him to outline how he plans to approach monetary policy going forward, with markets currently pricing a 35% chance of a September rate hike rising to 66% by December.
Nvidia will report its second-quarter earnings on August 26, which could offer fresh insight into underlying demand for AI infrastructure. Other notable earnings this week include Intuit, CrowdStrike, HP, Salesforce, and Marvell.