Equities Rise as Oil Stabilizes; Bitcoin Rally Fuels Crypto Stock Surge

The S&P 500 Index ($SPX) (SPY) closed up 0.43% on Friday, the Dow Jones Industrial Average ($DOWI) (DIA) advanced 0.98%, and the Nasdaq 100 Index ($IUXX) (QQQ) gained 0.33%. E-mini S&P futures rose 0.37%, while September E-mini Nasdaq futures added 0.27%.

Stock indices finished higher as crude oil prices stabilized, temporarily easing inflation concerns. Crude consolidated below Thursday’s one-month high after Iranian President Masoud Pezeshkian called for an end to the U.S.-Iran conflict. Markets now await Monday’s press conference, where U.S. Treasury Secretary Bessent is expected to detail plans to isolate Iran’s economy.

Cryptocurrency-exposed stocks led the broader market after Bitcoin surged to a three-month high. Bitcoin (^BTCUSD) jumped more than 6% on Friday and has rallied over 20% this week. Institutional buying returned after the U.S. Treasury announced it would at least double its long-dated bond buybacks, triggering a massive short-covering rally in digital assets. According to Coinglass data, over $2 billion in short Bitcoin positions in the perpetual futures market have been liquidated since Wednesday.

Mild weakness in chipmakers and AI-infrastructure stocks capped gains in the Nasdaq 100. Additionally, rising bond yields pressured the broader market, with the 10-year Treasury note yield climbing 3 basis points to 4.73%.

U.S. economic data was mixed. The August S&P manufacturing PMI fell 0.7 to 53.2, missing expectations of 53.9. However, the August S&P services PMI unexpectedly rose 2.8 points to 56.8—well above the forecasted decline to 54.0—marking the fastest expansion pace in 4.5 years.

Uncertainty regarding a Middle East resolution continues to keep the Strait of Hormuz closed, restricting crude supplies and maintaining upward pressure on oil. October WTI crude (CLV26) settled slightly higher, though gains were limited by Pezeshkian’s comments that “it would be better to end the war today.” Crude spiked to a one-month high Thursday after President Trump threatened Iran and its trading partners with economic isolation. Treasury Secretary Bessent confirmed the administration will announce its isolation plan Monday.

President Trump stated he is not interested in extending the expired nuclear agreement with Iran, dimming prospects for a swift reopening of the Strait of Hormuz. He added that the U.S. naval blockade on Iranian ports is applying pressure and that there is no timeline for resolving the conflict. On Monday, U.S. Energy Secretary Chris Wright indicated the U.S. is “playing the long game,” suggesting no imminent de-escalation.

No progress has emerged toward a U.S.-Iran agreement to fully open the Strait. An Iranian military spokesperson stated last Thursday that no vessel can safely transit the Strait without Iran’s authorization, dismissing President Trump’s claims of U.S. control as “lies.”

Strong second-quarter earnings expectations remain a bullish catalyst. The S&P 500 is tracking nearly 32% earnings growth in Q2, well above the 23% projection and nearly four times the post-Covid average since Q4 2013, per Bloomberg Intelligence. AI spending is expected to drive the bulk of earnings, with AI infrastructure stocks contributing nearly 60% of the index’s EPS growth. So far, 86% of the 468 S&P 500 companies that have reported have beaten estimates.

Markets are pricing in a 39% chance of a 25-basis-point rate hike at the September 15-16 FOMC meeting.

Overseas markets closed mixed. The Euro Stoxx 50 rose 0.63%, China’s Shanghai Composite edged up 0.04%, and Japan’s Nikkei 225 fell 0.30%.

Interest Rates

September 10-year T-notes (ZNU6) closed down 7.5 ticks. The 10-year yield rose 3.2 basis points to 4.736%. Treasurys faced pressure from the equity rally, which curbed safe-haven demand, and from the stronger-than-expected services PMI signaling economic resilience.

European government bond yields declined. The 10-year German bund yield fell 0.1 basis point to 3.258%, and the 10-year UK gilt yield dropped 0.7 basis points to 5.060%.

The Eurozone August S&P manufacturing PMI unexpectedly rose 0.9 to 52.8, the fastest expansion in 4.25 years, while the composite PMI unexpectedly ticked up 0.1 to 52.1. ECB July 1-year CPI expectations eased to 2.9% from 3.0%, and 3-year expectations fell to 2.7% from 2.8%. The Eurozone August consumer confidence index unexpectedly rose 0.4 to a six-month high of -15.5. UK July retail sales excluding auto fuel fell 0.9% month-over-month, the steepest decline in 14 months. Markets are discounting a 95% chance of a 25-basis-point ECB rate hike at the September 10 policy meeting.

US Stock Movers

Cryptocurrency-exposed stocks soared as Bitcoin extended its weekly rally. Coinbase Global (COIN) jumped over 7%, and Strategy (MSTR) surged more than 6% to lead the Nasdaq 100. Circle Internet Group (CRCL) climbed over 5%.

Mining shares rallied on sharp gains in copper, gold, and silver. Southern Copper (SCCO) advanced over 8%, and Freeport-McMoRan (FCX) rose more than 7%. AngloGold Ashanti (AU) gained over 6%, while Newmont (NEM) and Barrick Gold (B) added over 3%.

Chipmakers and AI-infrastructure names declined, limiting broader gains. Marvell Technology (MRVL) slumped over 5% to lead losers in the S&P 500 and Nasdaq 100. Applied Materials (AMAT), Advanced Micro Devices (AMD), ARM Holdings (ARM), Intel (INTC), and Lam Research (LRCX) fell more than 2%. KLA Corp (KLAC), Western Digital (WDC), Micron Technology (MU), and Seagate Technology (STX) dropped over 1%.

Utility stocks slid as Treasury yields rose. Sempra (SRE) fell over 5%, and Edison International (EIX) dropped more than 4%. American Electric Power (AEP), CenterPoint Energy (CNP), and Xcel Energy (XEL) declined over 3%, while Exelon (EXC), Public Service Enterprise Group (PEG), and Duke Energy (DUK) lost more than 2%.

Moderna (MRNA) surged over 8%, and Merck (MRK) rose over 2% on positive carryover from Wednesday’s announcement that their cancer vaccine combined with Keytruda significantly reduced melanoma recurrence in a late-stage trial.

Parsons Corp (PSN) climbed over 6% after Baird upgraded the stock to Outperform from Neutral with a $57 price target.

Tesla (TSLA) gained over 5% after Nevada’s Transportation Authority approved up to 5,000 Tesla autonomous vehicles for paid passenger rides in Clark County over the first 12 months.

Ross Stores (ROST) advanced over 4% after reporting Q2 sales of $6.26 billion, beating the $6.16 billion consensus, and raising its FY2027 EPS forecast to $8.61–$8.77 from $7.50–$7.74.

Teradyne (TER) fell over 2% after Baird downgraded the stock to Neutral from Outperform.

Earnings Reports (8/24/2026)

Napco Security Technologies (NSSC).

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