US stocks advanced in early trading Friday, with the Nasdaq 100 index on track to end a five-session losing streak as bond yields steadied and bitcoin rallied sharply. By 9:34 a.m. in New York, the S&P 500 had climbed 0.4%, the Nasdaq 100 gained 0.3%, and the Dow Jones Industrial Average rose 0.6%.

Chip manufacturers led the advance as traders positioned ahead of Nvidia's earnings report due next Wednesday. Bitcoin extended its winning run to a fifth consecutive day, with Strategy Inc shares surging 4.2% at the open and other cryptocurrency-linked equities also moving higher. The 10-year US Treasury yield held largely unchanged at 4.72%.

Bank of America strategist Michael Hartnett cautioned that if the Treasury Department's plan to suppress long-term yields fails, the dollar could face pressure, potentially triggering short positions on higher-risk assets ahead of the November midterm elections. Treasury Secretary Bessent is scheduled to provide further details of the department's strategy at a press conference Monday, which could give traders greater clarity on the trajectory of yields.

Later next week, markets may receive additional signals on the interest rate outlook when Federal Reserve Chairman Kevin Warsh delivers remarks at the Jackson Hole Economic Policy Symposium on Friday. The AI trade also faces a major test next week, with Nvidia set to report earnings after the close on Wednesday, with traders focused on demand for the company's chips and its financing plans.