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Bond Volatility Ends S&P and Nasdaq Win Streaks as Bitcoin Soars

A brief Treasury buyback boost failed to hold yields down so markets now look to a Treasury Iran briefing, Nvidia earnings and Jackson Hole for direction.

Overview

  • Major U.S. indexes closed higher on Friday but still posted weekly losses that ended three-week winning streaks for the S&P 500 and Nasdaq, leaving sentiment fragile.
  • Treasury Secretary Scott Bessent announced an expansion of government bond buybacks to more than $4 billion per issue, a move that briefly pushed yields lower but then reversed as long-term Treasury rates rose again.
  • Bessent is scheduled to hold a Monday press briefing to outline the U.S. plan to economically isolate Iran after President Trump warned of severe consequences for countries that trade with Tehran.
  • Bitcoin jumped to about $77,000 for its best week in two years while oil traded near $87 a barrel, a mix that shows some investor rotation to alternatives and raises the prospect of higher costs for households and firms.
  • Investors are now focused on near-term tests of market direction: Nvidia’s earnings and the Federal Reserve’s Jackson Hole remarks that could reshape expectations for tech demand and interest rates.