BUSINESS
Wall Street rebounds, but yield surge sets stage for weekly losses
Avinash P and Purvi Agarwal
Reuters
Aug. 21, 2026, 10:15 a.m. ET
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The main U.S. stock indexes rose on Friday after a drubbing in the previous session, though markets were still on track to end the week lower as elevated government bond yields and geopolitical tensions weakened risk tolerance
The S&P 500 .SPX and the tech-heavy Nasdaq .IXIC were set to snap a three-week winning streak, while the Dow .DJI was headed for a second consecutive weekly loss and its steepest weekly decline since mid-March
On Friday, financial stocks provided the biggest boost to the market, with big banks JPMorgan Chase JPM.N and Goldman Sachs GS.N up 1.2% and 2.3%, respectively. The S&P 500 banks index .SPXBK rose 1.1%
Retail-investor platform Robinhood HOOD.O advanced 12.4%. Crypto exchange operator Coinbase Global COIN.O gained 9.5% and bitcoin-hoarder Strategy MSTR.O rose 7.4% as bitcoin BTC= touched its highest mark since late May
Most megacap and growth stocks were also higher, with Meta META.O and Tesla TSLA.O up over 1% each
Tech stocks are set to underperform peers this week, hammered by a surge in longer-dated Treasury yields. Concerns over ballooning government debt, higher financing costs and persistent inflation fears had pushed up 30-year Treasury bond yields US30YT=RRto a 19-year high on Tuesday
U.S. Treasury Secretary Scott Bessent’s announcement on Thursday that the government could further increase its Treasury repurchases after Wednesday’s surprise interventionprovided short-lived respite
Paul Stanley, managing director and founding advisor at Arca, said the massive bond market was pricing off a stronger economy and higher inflation, so the relief was temporary
“It is another brick in the market’s wall of worry and ultimately, the market will likely resume its focus on the promise of AI and how companies are using this productivity to drive earnings,” he said
At 09:50 a.m. ET, the Dow Jones Industrial Average .DJI rose 361.71 points, or 0.68%, to 53,119.88, the S&P 500 .SPXwas up 29.02 points, or 0.39%, to 7,670.18, and the Nasdaq Composite .IXIC gained 49.29 points, or 0.19%, to 26,116.66
Ross Stores ROST.Oadded 4.2% after the value retailer raised its annual profit forecasts and reported better-than-expected second-quarter results
However, Bessent said the United States will impose “the toughest sanctions in history” on Iran, a move he suggested would lessen the need for new major military operations, keeping risk appetite in check
The impasse between Washington and Tehran has meant oil prices are higher, though they dipped slightly on Friday. O/R
UBS Global Wealth Management raised its year-end target for the S&P 500 to 8,100, citing a stronger earnings outlook and robust corporate profit growth
A flash estimate of the S&P Global purchasing managers’ index survey stood at 53.2 for August, compared with an estimate of 53.9, according to economists polled by Reuters
Eyes on Warsh, AI bellwether NVIDIA
Attention will now turn to next week’s personal consumption expenditures data, the U.S. Federal Reserve’s preferred inflation gauge, following tame inflation readings last week that knocked down bets of an imminent central bank rate hike
Fed Chair Kevin Warsh’s speech at the Jackson Hole symposium will also be watched, while Nvidia NVDA.O is scheduled to report quarterly earnings next week, in the next test of the AI trade
Advancing issues outnumbered decliners by a 2.45-to-1 ratio on the NYSE and by a 2.23-to-1 ratio on the Nasdaq
The S&P 500 posted four new 52-week highs and two new lows, while the Nasdaq Composite recorded 34 new highs and 33 new lows
