U.S. stocks rebound as Dow jumps 500 points after steep sell-off

U.S. stocks rebounded broadly on Friday, August 21, as buybacks dominated trading after the previous session’s steep declines. At 2:45 p.m. ET, the Dow Jones Industrial Average had risen 500.32 points, or 0.95%, to 53,259.53, while the Nasdaq Composite gained 85.81 points, or 0.33%, to 26,152.98. Goldman Sachs, Cisco Systems and Merck led the Dow higher, and Coinbase Global posted sharp gains. The recovery reflected bargain hunting after rising long-term Treasury yields and surging oil prices pressured equities amid intensifying U.S.-Iran tensions. Rate-hike concerns remain, despite Treasury Secretary Scott Bessent saying the expanded long-term Treasury buyback program could have per-auction caps exceeding $4 billion, approximately ¥640 billion. Investors are awaiting July’s Personal Consumption Expenditures (PCE) price index and the annual Jackson Hole Economic Symposium, where Fed Chair Warsh is scheduled to deliver a keynote address. Nvidia’s August 26 earnings report is also expected to test the sustainability of AI-related investment and influence the broader technology sector. Market participants remain divided on whether the rebound can last while the rate-hike trend persists.

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U.S. stocks rebound as Dow jumps 500 points after steep sell-off - CoinPost Terminal