Dow Jones Industrial Average jumps over 470 points Friday
The Dow Jones Industrial Average closed Friday up 478.64 points, or 0.93%, at 51,828.62, helping U.S. stocks lock in a winning week even as Treasury yields hit multiyear highs. The S&P 500 and Nasdaq also advanced, as softer oil prices and resilient tech demand outweighed bond-market jitters.
Key Takeaways
- The Dow Jones Industrial Average rose 478.64 points (0.93%) to 51,828.62 on Friday.
- The S&P 500 gained 0.51% to 7,743.41 and the Nasdaq Composite rose about 0.5% to 27,068.72.
- Weekly gains: Dow +0.3%, S&P 500 +1.2%, Nasdaq +2%, snapping the Dow's three-week losing streak.
- The 10-year Treasury yield touched multiyear highs near 5.2% as oil eased and tech led.
- Fed funds futures implied roughly a 64% chance of an October rate hike, per CME FedWatch.
Why did the Dow Jones Industrial Average rally on Friday?
U.S. equities finished higher as Wall Street wrapped a volatile week. According to CNBC, the Dow's nearly 479-point jump paced the session, while the S&P 500 climbed 0.51% and the Nasdaq Composite gained about 0.5%.
Sentiment got a lift as oil prices slid amid optimism that the Strait of Hormuz could reopen after Iran asked the U.S. to return to a June memorandum of understanding. West Texas Intermediate crude settled at $92.41 a barrel, down 2.33%, and Brent fell 2.14% to $104.32, CNBC reported.
Akamai Technologies rose about 3% after announcing a multiyear deal with Anthropic, adding to the bullish tone in growth names.
How did stocks notch a winning week despite rising yields?
Despite a sharp bond sell-off, major indexes posted weekly advances. The Dow was up 0.3% for the week, the S&P 500 added 1.2%, and the Nasdaq rose 2%, with the Dow ending a three-week losing streak, CNBC and Yahoo Finance reported.
Technology helped cushion the market. Information technology was the strongest S&P 500 sector, up 3.1% on the week. Meta Platforms jumped nearly 13% for the week on excitement around its AI agent Muse.
Yahoo Finance noted investors assessed macroeconomic and geopolitical crosscurrents that pushed oil lower and yields higher in recent days, yet still bought equities into the close.
What is driving the Treasury yield surge right now?
Bond markets remained the week's pressure point. CNBC said the 10-year Treasury yield climbed to its highest level since 2007, last seen near 5.163%, while the 30-year yield reached its highest since 2004 near 5.488%. An intraday 10-year print touched 5.230% Friday, the highest since June 2007.
This week's yield ascent was fueled by hawkish comments from Federal Reserve Governor Michael Barr, persistently high energy prices tied to the Iran war, and a hot purchasing managers' report. Fed funds futures pointed to roughly a 64% likelihood of a rate hike in October, according to the CME FedWatch tool cited by CNBC.
Eric Diton, president of The Wealth Alliance, told CNBC the market has been "incredibly resilient" even as bearish sentiment rose, though he cautioned that further rate climbs could weigh more heavily later.
Separately, University of Michigan final September consumer sentiment fell to 48.1, a four-month low, with near-term inflation expectations at 4.6%. Traders also watched Chinese President Xi Jinping's U.S. visit; Treasury Secretary Scott Bessent said the countries agreed to extend their trade truce by two months.
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