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What Happened in Markets Today
Bond yields moved back up near their highest levels in over a decade even as Treasury Secretary Scott Bessent seeks to contain borrowing costs. Yields on 30-year Treasurys advanced to around 5.28%, with 10-year yields around 4.74%. Bessent said Thursday that the Treasury had a "big toolkit" for the Treasurys market, adding that the administration would announce an "increased focus on fiscal consolidation" in coming days.
One asset benefiting from the market turmoil is bitcoin, which was recently up almost 6% and briefly neared $80,000 early this morning. The digital currency has also been buoyed by President Trump urging Congress to pass crypto-friendly legislation.
Stocks bounced back. The S&P 500 and Nasdaq both added around 0.4%. The Dow gained 1%, or over 500 points.
Prices of precious metals rose sharply again Friday. The moves were a bit hard to square with rising bond yields, which makes holding precious metals a tough sell compared to just plonking the money in a savings account. But worries about America's fiscal situation have a way of inspiring gold bugs. Front-month gold futures added 5.6%, or $243.70 a troy ounce this week to settle Friday at $4,624.10. It was the third straight weekly gain for the precious metal, which has gained more than 14% over that span. Silver futures, also on a three-week winning streak, rose even more.
Markets at a Glance
One Big Story
Kevin Warsh came to the chairmanship of the Federal Reserve a harsh critic of the central bank's recent inflation record: more than five years above the 2% target.
He hasn't yet detailed how he would approach inflation differently. He has, however, convened several task forces, one of which will examine how the Fed "understands and responds to the drivers of inflation." Its three leaders' recommendations could be a chance for Warsh to put a new stamp on how the central bank tackles rising prices.
They will have their work cut out for them. Economists inside and outside the Fed disagree on what drives inflation surges, and how best to watch for and respond to them. The panelists' past work suggests they may recommend that fiscal policy, fighting financial bubbles and tracking the money supply play a larger role in Fed thinking than they have in recent times.
🎥 Heard on the Street's Quick Take
For some, mRNA seemed like the biotech investment play of yesteryear, but on the heels of Moderna and Merck's new mRNA cancer treatment, investors are rushing back in. WSJ's David Wainer explains.
What's Coming Up
Nvidia, Salesforce, CrowdStrike, HP, Okta, Abercrombie & Fitch, and J.M. Smucker are among companies reporting earnings next week.
The central bank's annual Wyoming conference runs Thursday through Saturday. It will be closely watched for hints on Fed Chairman Kevin Warsh's economic outlook.
Economic data will include durable goods orders for July, 2nd estimate of second quarter GDP and personal consumption and expenditures (PCE), the Fed's preferred inflation gauge.
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About Us
Markets P.M. catches you up on the day's most important markets moves, delivered after the closing bell. This email was written by David Wainer for Heard on the Street, The Wall Street Journal's home for financial analysis and commentary. To send us your feedback, reply to this email. Got a tip for us? Here's how to submit.