Wall Street rallies Friday, but S&P 500 falls 1.43% for week

U.S. stocks finished higher Friday, with the Dow Jones Industrial Average gaining 517.80 points, or 0.98%, to 53,277.01, the S&P 500 rising 33.21 points, or 0.43%, to 7,674.37, and the Nasdaq Composite adding 113.29 points, or 0.44%, to 26,180.46. The gains did not prevent a weak week: the S&P 500 fell 1.43%, the Nasdaq dropped 2.05% and the Dow declined 0.85%, ending recent winning streaks for all three benchmarks. A rise in long-dated Treasury yields, higher oil prices linked to Middle East tensions and persistent inflation concerns pressured equities. The 30-year U.S. Treasury yield reached 5.327% around August 18, its highest level since 2007, while Treasury Secretary Scott Bessent's mid-week announcement of increased bond buybacks helped stabilize markets toward the week's end. Brent crude rose 6.39% for the week and U.S. crude gained 5.66%, extending their advances to six consecutive sessions. Stronger-than-expected U.S. business activity data, including the services sector's strongest growth in nearly two years, supported Friday's rally but complicated the Federal Reserve's effort to balance inflation control with continued economic expansion. Investors turned their attention to corporate earnings, inflation-related economic data and the upcoming Jackson Hole symposia.

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