Stocks closed higher on Friday, with the Dow Jones Industrial Average leading the way, as upbeat economic data and calmer bond markets gave investors a reason to buy after a turbulent week. A report showing U.S. business activity growing at its fastest pace in more than four years helped lift sentiment, even though the major averages still finished the week lower following an earlier sell-off in Treasurys.
What Moved Markets
The Dow Jones Industrial Average rose 550.39 points, or 1.04%, to close at 53,309.60. The S&P 500 added 33.21 points, or 0.43%, to finish at 7,674.37, while the Nasdaq Composite climbed 113.29 points, or 0.43%, to end at 26,180.46.
The gains came as traders welcomed signs of economic strength and a steadier bond market. Earlier in the week, a sharp rise in Treasury yields had pressured stocks, but yields settled after the Treasury Department said it would double the size of its long-term debt buybacks to at least $4 billion per operation, a move aimed at easing volatility. Materials and consumer discretionary shares led the advance, while energy and utilities lagged. Despite Friday’s rebound, all three major indexes posted losses for the week.
Notable Movers
Ross Stores (ROST) was a standout gainer, jumping roughly 9% after the off-price retailer reported second-quarter results that easily topped Wall Street estimates. The company posted earnings of $2.66 per share against expectations near $1.94, said comparable store sales rose 10%, and raised its full-year profit outlook.
Nvidia (NVDA) climbed ahead of its closely watched quarterly report due next Wednesday, helping the tech-heavy Nasdaq snap a five-day losing streak. The chipmaker’s results are seen as a key test of the artificial intelligence trade that has powered much of the market’s gains this year.
Walmart (WMT) remained under pressure, extending declines after its earnings report earlier in the week sent the retail giant to its worst day in four years. JPMorgan trimmed its price target on the stock to $125 from $137, though the new figure still implied meaningful upside from recent levels.
Bitcoin (BTC) added to the risk-on mood, topping $77,000 and notching its best week in two years as investors rotated back into higher-risk assets.
Looking Ahead
Attention now turns to Nvidia’s earnings on Wednesday, which could set the tone for technology stocks and the broader market in the days ahead. Investors will also keep a close eye on the bond market after this week’s volatility, along with additional economic reports that could shape expectations for interest rates. With the major indexes finishing the week lower despite Friday’s bounce, traders will be watching whether the rebound has staying power or whether choppy trading continues into the close of August.