TLDR
- Dow, S&P 500 and Nasdaq futures climbed Friday as Wall Street attempted to recover Thursday’s losses.
- Bitcoin reached a multi-month high, lifting Coinbase, Strategy and Robinhood shares in premarket trading Friday.
- Long-term Treasury yields remained elevated after the 30-year yield reached its highest level since 2007.
- Major U.S. indexes remained on course for weekly losses despite Friday’s recovery in stock futures.
- Investors await Kevin Warsh’s Jackson Hole speech, PCE inflation data and Nvidia earnings next week.
U.S. stock futures moved higher Friday as Wall Street attempted to recover from the previous session’s selloff, although major indexes remained on course for weekly losses amid elevated Treasury yields.
US Stock Futures Rebound as Treasury Yields Stay Elevated
Dow futures gained 0.59%, while S&P 500 futures rose 0.46% and Nasdaq 100 futures advanced 0.69% in early trading. The gains followed Thursday’s broad market decline, with most large technology stocks also recovering before the opening bell.
Alphabet shares gained 0.6% in premarket trading, while Tesla advanced 1.2%. Ross Stores jumped about 8% after the retailer raised its full-year profit forecast and reported second-quarter results that exceeded market expectations.
The rebound has not erased losses from earlier in the week. The S&P 500 and Nasdaq remain on track to end three consecutive weeks of gains, while the Dow is heading toward a second weekly decline and its weakest weekly performance since mid-March.
Long-term Treasury yields have remained a key source of pressure after the 30-year yield reached its highest level since 2007 earlier this week. Investors have been weighing persistent inflation, government debt levels and rising financing costs as yields remain near recent highs.
Treasury Secretary Scott Bessent said Thursday that the government could increase its Treasury repurchases further after doubling purchases of longer-dated debt. However, yields have shown limited reaction to the intervention.
Bitcoin Rally Lifts Coinbase, Strategy and Robinhood
Crypto-linked stocks extended their gains as Bitcoin climbed to its highest level since late May. President Donald Trump’s renewed call for Congress to pass crypto market structure legislation also supported sentiment across the sector.
Coinbase Global gained 4.5% before the opening bell, while Strategy rose 6.8% and Robinhood advanced 4.8%. The moves followed a broader recovery in digital assets after weeks of tighter trading conditions.
Geopolitical risks continued to limit broader risk appetite. Bessent said the United States plans to impose its toughest sanctions yet on Iran, while the continuing dispute between Washington and Tehran has kept pressure on global energy markets. Oil prices eased slightly Friday but remained elevated.
UBS Global Wealth Management raised its year-end S&P 500 target to 8,100, citing expectations for stronger corporate earnings and continued profit growth into next year.
Markets Turn to Fed Chair Kevin Warsh and Nvidia
Investors are now preparing for several economic and corporate events that could shape the next move in U.S. stocks. A preliminary S&P Global purchasing managers’ index reading for August is due Friday, providing another measure of business activity across the U.S. economy.
Attention will then shift toward next week’s Personal Consumption Expenditures inflation report. Recent inflation readings have reduced expectations for an imminent Federal Reserve rate increase, while markets continue assessing the central bank’s next policy move.
Federal Reserve Chair Kevin Warsh’s Jackson Hole speech will also be closely followed for guidance on interest rates and inflation. Warsh has maintained the Fed’s commitment to restoring inflation to its 2% target while providing limited guidance on the future rate path.
Nvidia’s quarterly earnings next week will provide another test for technology stocks and the artificial intelligence trade after recent volatility. The chipmaker’s results will arrive as investors assess whether earnings growth can support valuations while higher Treasury yields continue to pressure equity markets.
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