TLDR
- The Dow rose 518 points (1%) on Friday, with the S&P 500 and Nasdaq each gaining 0.4%
- All three major indexes still closed lower for the week, ending three-week winning streaks for the S&P 500 and Nasdaq
- Bitcoin reached $77,000, recording its best week in two years
- Bond market volatility continued after Treasury Secretary Scott Bessent’s buyback plan gave only brief relief
- Investors are watching Nvidia earnings and the Jackson Hole Symposium next week
US stocks closed higher on Friday, but it was not enough to rescue a rough week for the major indexes. The Dow Jones Industrial Average gained 518 points, or about 1%. The S&P 500 and Nasdaq Composite each added 0.4%.
Despite the Friday bounce, all three indexes posted weekly losses. The gains ended three-week winning streaks for both the S&P 500 and the Nasdaq.
Trading volume was light through much of Friday afternoon. Many traders appeared to have left early, with Labor Day approaching and summer winding down.
Bond Market Keeps Pressure on Stocks
Bond volatility was a key driver of the week’s turbulence. Treasury Secretary Scott Bessent announced plans Thursday to expand the government’s bond buyback program beyond $4 billion per issue.
You can't make this up:
At 8:15 AM ET yesterday, the 10Y Note Yield was trading at 4.68% when the US Treasury announced it would be increasing bond buybacks to $4 billion.
The yield fell to a low of 4.63% as the US Treasury pledged to provide "liquidity support."
Exactly 24… https://t.co/SLNs0MfTgD pic.twitter.com/em738sU23Z
— The Kobeissi Letter (@KobeissiLetter) August 20, 2026
Bessent said the move was meant to signal that yields do not reflect the underlying fundamentals of the economy. Markets got a brief lift from the news.
But the relief did not last. The 10-year and 30-year Treasury yields climbed back to their prior levels. Investors viewed the buyback plan as a limited measure rather than a lasting fix.
Bessent is scheduled to hold a press conference Monday. He is expected to outline the US plan to economically isolate Iran as part of the ongoing Middle East conflict.
Earlier in the week, President Trump threatened major economic consequences for any country that trades with Iran. The statement drew attention to China, which imports oil from the region.
Bitcoin Posts Best Week in Two Years
While stocks struggled, Bitcoin had a strong week. The cryptocurrency climbed to $77,000, its best weekly performance in two years.
The move came as investors appeared to shift toward alternative assets during the stock market volatility.
The CBOE Volatility Index, known as the VIX, was trading near 15 on Friday. That level suggests markets expect relatively calm conditions in the near term.
BJ’s Wholesale Club reported quarterly earnings that beat expectations. The retailer said its value-focused model is connecting with shoppers watching their spending.
Looking ahead, Nvidia is set to report second-quarter earnings next week. The chipmaker’s results will be closely watched given its central role in the AI industry.
The Federal Reserve’s Jackson Hole Economic Policy Symposium is also on the calendar. The event often signals shifts in Fed thinking on interest rates.
With no major economic data this week, markets stayed focused on bonds, geopolitics, and crypto. Next week brings more for investors to react to.
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