1 week ago
Nasdaq 100 Ends Five-Day Slump as Bitcoin Rallies
US stocks went up at the end of a nervous week.
The Dow rose by 1%, and the Nasdaq 100 stopped falling after five days.
Bitcoin also climbed to about $77,000.
Bond prices fell slightly, which means their yields rose a little.
Investors are worried that inflation and government borrowing could keep borrowing costs high.
They are waiting to see what Treasury Secretary Scott Bessent does about government finances.
They are also watching Nvidia’s results and an important speech at the Jackson Hole economic symposium.
Some experts think investors should stay invested but spread their money across different kinds of stocks.
The Dow Jones Industrial Average rose 1% as US stocks advanced during a volatile week.
The Nasdaq 100 ended a five-day decline ahead of Nvidia’s results scheduled for Wednesday.
Bitcoin climbed to around $77,000, while Treasuries posted mild losses and oil gained for the week.
Investors continued assessing higher bond yields linked to inflation concerns and government spending.
Markets are awaiting Treasury Secretary Scott Bessent’s fiscal-consolidation initiative and next week’s Jackson Hole speech by Federal Reserve Chair Kevin Warsh.
- Who
- US investors, Treasury Secretary Scott Bessent, Federal Reserve Chair Kevin Warsh, and market analysts quoted in the report.
- What
- US equities rose, the Nasdaq 100 ended a five-day slump, and bitcoin rallied while investors assessed bond-market volatility.
- Where
- Wall Street and global sovereign bond markets.
- When
- In the final stretch of the week described; Nvidia’s results were expected Wednesday and Kevin Warsh’s Jackson Hole speech the following week.
- Why
- Stocks rose alongside strong US business-activity data, while investors weighed inflation, government spending, bond yields, and upcoming policy and corporate updates.
Caution about market risks
Confidence in diversified equities
Impact of bond-market turbulence
Caution about market risks
Mark Hackett and Michael Hartnett highlighted concerns over debt issuance, interest rates, government spending, and the possibility that failed efforts to lower long-term yields could pressure markets.
Confidence in diversified equities
Ulrike Hoffmann-Burchardi said bond-market turbulence was not currently a reason to reduce equity exposure, although it strengthened the case for diversification.
What matters most for investors
Caution about market risks
Some analysts said elevated expectations, skepticism about artificial-intelligence investment, and upcoming policy developments could make markets more sensitive to negative surprises.
Confidence in diversified equities
Ann Miletti argued that investors should focus on companies with strong balance sheets and flexibility rather than trying to control broader market uncertainty.
Nvidia earnings versus monetary policy
Caution about market risks
Investors were positioned for Nvidia’s results, but analysts noted that earnings expectations were high and could leave less room for positive surprises.
Confidence in diversified equities
Allspring Global Investments’ Ann Miletti said the Jackson Hole economic symposium posed a greater concern for Wall Street than Nvidia’s earnings.
Key facts
- Dow Jones Industrial Average
- Rose 1%.
- Nasdaq 100
- Ended a five-day decline.
- Bitcoin
- Rose to around $77,000.
- Treasuries
- Recorded mild losses.
- Oil
- Posted a weekly gain.
- US business activity
- Grew at its fastest pace in more than four years.
- Upcoming events
- Nvidia results were expected Wednesday, while a Jackson Hole speech by Kevin Warsh was expected the following week.
Quotes
Ulrike Hoffmann-Burchardi
Investment professional at UBS Chief Investment Office
“The thing that we try to stay focused on with all the craziness going on is what you can control. Looking at companies from a bottom-up perspective, really understanding what companies have the balance sheet and the flexibility to kind of get through any environment — that’s really where we’re focused, and that’s what we have control of.”
CNBC TV 18
“We don’t currently see bond market turbulence as a reason to reduce equity market exposure. It does, however, reinforce the case for diversified equity exposure.”
CNBC TV 18
Joe Maher
Economist at Capital Economics
“We suspect long-dated Treasury yields will stabilize over the next few weeks as some calm is restored following the recent bout of volatility in global sovereign bond markets”
CNBC TV 18
Sources
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