The Charging Bull statue on Wall Street in New York. [AP]
The Charging Bull statue on Wall Street in New York. [AP]

All three major US stock indexes closed higher Friday as bargain hunters moved in following recent declines and a robust services sector reading lifted investor sentiment.

The Dow Jones Industrial Average rose 517.80 points, or 0.98 percent, to close at 53,277.01. The S&P 500 gained 33.21 points, or 0.43 percent, to finish at 7,674.37, while the tech-heavy Nasdaq Composite added 113.29 points, or 0.44 percent, to end at 26,180.46.

Treasury yields resumed their climb. Treasury Secretary Scott Bessent signaled Friday an expansion of the government's bond buyback program, but yields rose as concerns over the fiscal deficit and inflation persisted.

The 30-year Treasury yield edged up 1 basis point to 5.28 percent, while the 10-year yield rose 3 basis points to 4.73 percent. One basis point equals 0.01 percentage point.

Rising yields weighed on the market, but investors increasingly viewed recent price declines as a buying opportunity, drawing bargain hunters back in.

"As the 30-year yield stabilized near 5.3 percent — a level the Treasury finds uncomfortable — dip buyers stepped in and pushed the major indexes higher," said Seo Sang-young, a managing director at Mirae Asset Securities.

A solid expansion in the US services sector also supported sentiment. S&P Global's flash August services purchasing managers index business activity reading came in at 56.8, up 2.2 points from the previous month. That was the largest monthly gain in about 20 months, signaling a strengthening expansion in the sector.

The Philadelphia Semiconductor Index fell 0.51 percent. Micron dropped 0.77 percent, Nvidia slipped 0.98 percent and Intel declined 2.24 percent.

Cryptocurrency-related stocks surged. Coinbase and Robinhood jumped 8.2 percent and 14 percent, respectively.

Gold, widely seen as an alternative to the dollar, extended its rally. Spot gold rose 2.2 percent to $4,615.65 per ounce.

Despite Friday's rebound, all three major indexes posted weekly losses. The S&P 500 fell 1.4 percent for the week, while the Nasdaq and the Dow dropped 2.1 percent and 0.8 percent, respectively.

Oil prices rose for a sixth consecutive trading session, driven by fears of supply disruptions after the United States warned countries that do business with Iran of potential economic sanctions.

For the week, October Brent crude futures gained 6.63 percent and West Texas Intermediate crude rose 6.86 percent.

The dollar weakened. The US Dollar Index, which tracks the greenback against six major currencies, fell 0.05 percent to 98.83.

Bitcoin climbed to around $77,000 amid the dollar's weakness, pushing toward the $80,000 mark. The cryptocurrency has gained roughly 22 percent over the past week.

The coming week is packed with market-moving events, including the Federal Reserve's Jackson Hole policy symposium, a speech by Fed Chair Kevin Warsh and the release of the July personal consumption expenditures price index. Major technology companies, including Nvidia, are also set to report earnings.

"This is not simply a week to watch PCE inflation and Nvidia's earnings — it is a pivotal week in which the next-generation technology, demand outlook and competitive landscape of the AI semiconductor industry will all be revealed at once, making significant moves in related stocks highly likely," Seo said.


moon@heraldcorp.com