MARKET SNAPSHOT
U.S. stocks bounced back Friday but ended lower for the week as Treasury yields held near their highest levels in over a decade. The dollar weakened as investors favored gold and cryptocurrencies, with bitcoin surging. Oil prices ended higher as Middle East tensions simmered.
MARKET WRAPS EQUITIES
U.S. stocks rose Friday as a surging bitcoin and resilient crypto stocks helped lift sentiment. However, the S&P 500 posted its first weekly loss since late July.
The Dow Jones Industrial Average rose nearly 1%. The S&P 500 gained 0.4%, while the Nasdaq Composite advanced 0.4%. According to preliminary data, there were 1,652 advancing issues and 1,068 declining issues on the NYSE.
Bitcoin rose 6% to over $77,000, posting its best weekly performance in more than two years. The rally was driven by a combination of forces: Treasury Secretary Scott Bessent's bond buyback announcement, President Trump's push for crypto-friendly legislation and big inflows into spot bitcoin ETFs. Coinbase rose 8.2%, Robinhood jumped 14% and Strategy gained 6.1%.
Asian stock markets were mixed.
Japan's Nikkei Stock Average fell 0.8%.
China's Shanghai Composite Index was flat, while the Shenzhen Composite Index and the ChiNext Price Index rose 0.5% and 1.4%, respectively.
South Korea's Kospi added 0.6% and Hong Kong's Hang Seng Index rose 1.2%.
In Australia, the S&P/ASX 200 Benchmark Index dropped 0.3%. New Zealand's S&P/NZX 50 Index gained 0.4%.
COMMODITIES
Oil futures ended the week higher with no progress made toward resolving the U.S.-Iran conflict, and the U.S. planning to tighten the economic squeeze on Iran rather than renew major military action.
While geopolitics remained the main driver of oil prices, "the continuation of tensions alone is no longer creating the same price shock as before," Linh Tran of XS.com said in a note. "The market may now need a more significant escalation to materially change expectations for Middle East supply."
WTI settled up 0.3% at $87.06 on Friday for a 6.9% weekly gain. Brent rose 0.7% to $94.39 a barrel, up 6.6% on the week.
Gold settled up 2.4% Friday, and silver rose 2.1%, with both metals rising for a third-consecutive session and posting gains for the week.
TODAY'S TOP HEADLINES
The Wild Week When Scott Bessent Was Schooled by the Bond Market
Brian Jacobsen was heading into a meeting Wednesday when Treasury Secretary Scott Bessent threw a major curveball at the U.S. bond market.
A day earlier, yields on 30-year U.S. Treasurys had touched near two-decade highs and investors were on edge. Jacobsen, chief economic strategist at Annex Wealth Management in Brookfield, Wis., had trimmed holdings of longer-term bonds in portfolios he manages for clients.
Now, in the wake of the Treasury Department announcing that it would at least double buybacks for long-term bonds, the market was moving against him by rallying. The maneuver, Jacobsen said, clearly wasn't just a technical adjustment, but "an attempt to try to tame the moves" in yields.
The Three Minds Leading the Fed's Inflation Rethink
Kevin Warsh came to the chairmanship of the Federal Reserve a harsh critic of the central bank's recent inflation record: more than five years above the 2% target.
He hasn't yet detailed how he would approach inflation differently. He has, however, convened several task forces, one of which will examine how the Fed "understands and responds to the drivers of inflation." Its three leaders' recommendations could be a chance for Warsh to put a new stamp on how the central bank tackles rising prices.
They will have their work cut out for them. Economists inside and outside the Fed disagree on what drives inflation surges, and how best to watch for and respond to them. The panelists' past work suggests they may recommend that fiscal policy, fighting financial bubbles and tracking the money supply play a larger role in Fed thinking than they have in recent times.
U.S. to Boost Beef Imports to Address High Prices, Trump Says
President Trump announced a plan to temporarily allow more foreign beef imports into the U.S. without paying higher tariffs, his latest move aimed at easing a run-up in beef prices for American shoppers.
Trump, in a social-media post on Friday, said the Trump administration, for the next 90 days, will allow up to 300,000 metric tons of ground beef to be imported into the U.S. without triggering higher tariff rates. "We have a commitment that this beef will be sold at 25 percent below current market prices," Trump said.
Reducing beef prices has been a priority for the Trump administration, which is feeling pressure to convince Americans that it is taking steps to tame food inflation. Record-high beef prices have been among the most stubborn sources of food inflation for U.S. consumers over the past year and a half.
Week Ahead for FX, Bonds: Warsh Speech at Jackson Hole, U.S. PCE Data in Focus
Federal Reserve Chairman Kevin Warsh's speech at the Jackson Hole symposium will be the key event for investors as they continue to seek clarity on whether and when U.S. interest rates might rise.
U.S. PCE inflation data will also be watched closely as this is the Fed's favored measure of inflation.
In Europe, regional inflation and sentiment data are due.
Nvidia in Talks to Invest in Data-Center Power Developer Cloverleaf Infrastructure
Nvidia is in advanced discussions to make an investment in Cloverleaf Infrastructure, a company that arranges power for data-center projects, according to people familiar with the deal.
The transaction could be announced as soon as Friday morning, the people said. The exact terms of the deal couldn't be immediately learned, but Nvidia is expected to invest several hundred million dollars, one of the people said.
In recent months, Cloverleaf had been working with JPMorgan Chase on strategic options, including a potential sale of the business, according to people familiar with the deal. Cloverleaf raised $300 million in 2024, the year it was founded, from energy investors NGP and Sandbrook Capital.
Fannie Mae Hit by Turmoil in Senior Ranks as Roughly 12 Executives Are Let Go
Roughly a dozen high-ranking officials were let go at Fannie Mae this week, raising concerns about more turmoil at one of the firms that back major portions of the mortgage market, according to people familiar with the matter.
Word of the senior departures spread across the industry Friday, creating worries that Fannie's ability to provide stability to prices and activity could be hampered.
Fannie Mae and Freddie Mac play a pivotal role by buying up mortgages and packaging them to sell to investors, guaranteeing the investors payments even if borrowers default. This empowers U.S. lenders to make more 30-year fixed-rate mortgages.
Justice Department, TikTok Reach $400 Million Settlement Over Children's Privacy Suit
The Justice Department and TikTok reached a $400 million settlement to resolve allegations the social-media company violated laws meant to protect the online privacy rights of children.
Under the settlement, TikTok will pay $300 million immediately and an additional $100 million after entering an order vacating a prior consent decree against its predecessor Musical.ly, the DOJ said Friday.
The DOJ filed a complaint against TikTok in 2024, alleging it failed to comply with the Children's Online Privacy Protection Act, known as COPPA. The law requires internet companies to notify parents, and obtain their consent, before collecting personal information from children under the age of 13.
Expected Major Events for Monday 05:00/SIN: Jul CPI
08:00/TAI: Jul Employment / Unemployment
08:20/TAI: Jul Money Supply
21:00/SKA: Aug Consumer Sentiment Index
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