Nasdaq 100 halts five-day slump as bitcoin rallies

The final stretch of a jittery week on Wall Street saw stocks rising amid solid economic data, with traders weighing the outlook for bonds after a burst of volatility.

Equities extended their August advance as US business activity grew at its fastest pace in more than four years. The Dow Jones Industrial Average climbed 1%. The Nasdaq 100 halted a five-day drop in the countdown to Nvidia Corp.’s results on Wednesday. Bitcoin rose to around $77,000. Treasuries saw mild losses. Oil notched a weekly gain.

Investors are assessing the fallout from a recent spike in bond yields that was fueled by worries about inflation and spendthrift governments, prompting the US to intervene to curb longer-term borrowing costs. They are now awaiting a promised new initiative from Treasury Secretary Scott Bessent aimed at fiscal consolidation.

“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,” said Joe Maher at Capital Economics.

The extent of this week’s equity decline was modest, but some signals cannot be ignored, said Mark Hackett at Nationwide. The drop was driven by concern over debt issuance and rates, frustration over stalled progress in talks with Iran and skepticism on the artificial-intelligence buildout.