U.S. Equities Climb Amid Market Volatility

On Friday, U.S. stocks experienced an uptick as Wall Street prepared to close out a rather tumultuous trading week, highlighted by a rise in Treasury yields affecting the broader financial landscape.

The S&P 500 increased by 0.6%, while the Nasdaq Composite saw a 0.7% gain. The Dow Jones Industrial Average moved up by 460 points, reflecting a 0.9% rise.

Akamai Technologies stood out as a significant player in this session, climbing 6% following the announcement of a multiyear partnership with Anthropic.

Additionally, the mood brightened as oil prices decreased, buoyed by optimism around the possible reopening of the Strait of Hormuz. Iran’s Foreign Minister Abbas Araghchi suggested that he could reopen the strait and resume nuclear discussions with the U.S. within a week, contingent on Washington’s agreement to certain conditions.

Reuters reported Thursday that discussions between U.S. and Iranian negotiators in New York involve a phased plan to resolve the ongoing Middle East conflict.

On Friday, U.S. West Texas Intermediate crude futures fell by 2% to approximately $91 per barrel, with international benchmark Brent crude futures also down by 2%, sitting around $103 per barrel.

Thanks to these gains, the Dow is poised for a winning week, showing a 0.3% increase. The S&P 500 looks to end up 1%, while the Nasdaq is up by 2% this week alone.

The rise in technology stocks, like Meta Platforms—which surged over 12% this week, thanks to enthusiasm around its AI agent named Muse—has played a significant role. The S&P 500’s information technology sector is likely to close with about a 3% gain, the highest of any sector in the index.

The bond market also saw its share of drama as the 10-year Treasury yield reached heights not seen since 2007, while the 30-year yield hit levels last observed in 2004. These yields were last noted at 5.188% and 5.49%, respectively.

This week’s upward trend in yields has been attributed to hawkish statements from Federal Reserve Governor Michael Barr, ongoing high energy prices linked to the Iran conflict, and an impressive purchasing managers’ report. Futures trading indicates about a 66% chance of an interest rate hike in October, based on the CME FedWatch tool.

Eric Diton, president of The Wealth Alliance, observed that as bond yields rise, investor sentiment has been softening, with a notable increase in bearish feelings compared to two weeks ago. Still, he sees the market showing remarkable resilience, with the S&P 500 and Nasdaq remaining roughly 1% below their recent peaks.

“If rates keep climbing, they will likely have a more significant effect on market performance down the line,” he added cautiously.

In another notable development, traders were keeping an eye on Chinese President Xi Jinping’s visit to the U.S. this week. U.S. Trade Representative Jamieson Greer mentioned on CNBC that more details regarding U.S.-China negotiations are expected to be shared on Monday.

Treasury Secretary Scott Bessent indicated earlier in the week that the two nations have agreed to extend their trade truce for another two months.