US Stock Markets Recover Friday Gains as Bitcoin Surges

Major US stock indices closed higher on Friday, recovering some losses after a volatile week. The Dow Jones rose 0.98 percent, while the S&P 500 and Nasdaq Composite both increased by 0.43 percent. Despite the Friday bounce, the indices ended the week in negative territory. The S&P 500 fell 1.43 percent for the week, the Nasdaq dropped 2.05 percent, and the Dow declined between 0.85 percent and 1.97 percent depending on the reporting source. Market pressure throughout the week was driven by rising US Treasury yields, inflation fears, and oil price increases linked to conflict between the US and Iran.

In an effort to stabilize the market, Treasury Secretary Scott Bessent announced a plan to at least double the buyback of government bonds starting in September. While some analysts noted this increased liquidity and risk appetite, others described the move as insufficient to address structural issues or compared it to paying a mortgage with a credit card. Investors are now looking toward the upcoming Jackson Hole meeting for further clarity on monetary policy.

Bitcoin saw a significant rally, rising more than 20 percent over the week to trade between 77,000 and 77,200 dollars. This surge was attributed to increased liquidity from the Treasury buybacks and positive sentiment surrounding the proposed Clarity Act, which aims to establish a clearer regulatory framework for crypto infrastructure. Related stocks also rose, including Coinbase and Robinhood.

Other notable market movements included a gain for Moderna and Merck following positive results from a phase 3 cancer vaccine trial. In Asia, Samsung shares rose 3.9 percent following an 80 billion dollar share buyback announcement. In Europe, major indices in London, Paris, and Frankfurt closed higher on Friday, though they are expected to post poor weekly performances.