US Stocks Rebound, but Bond Yields and Geopolitics Weigh on Market
The US stock market rebounded on Friday after a difficult previous session, but is still poised to end the week in the red due to rising government bond yields and geopolitical tensions.
The S&P 500 and Nasdaq were set to snap their three-week winning streak, with the Dow Jones Industrial Average headed for its second consecutive weekly loss since mid-March. Financial stocks led the gains, with JPMorgan Chase and Goldman Sachs up 1.2% and 2.3%, respectively.
Retail-investor platform Robinhood advanced 12.4% and crypto exchange operator Coinbase Global gained 9.5%, with bitcoin reaching its highest mark since late May. However, most megacap and growth stocks underperformed peers due to the surge in longer-dated Treasury yields, which have pushed 30-year bond yields to a 19-year high.
UBS Global Wealth Management raised its year-end target for the S&P 500 to 8,100, citing stronger earnings outlook and corporate profit growth. Fed Chair Kevin Warsh's speech at the Jackson Hole symposium will be watched closely next week, as well as Nvidia's quarterly earnings report.