Highlights
Major stock averages continued to advance on Friday after Thursday’s rebound from Wednesday’s steep selloff. The AI momentum trade bounced on Thursday as the market viewed the correction in the momentum trade as exhausted, and that move continued on Friday. The Dow Jones industrial average gained 0.5 percent while the S&P 500 gained 0.7 percent, and the Nasdaq was up 1.0 percent.
Bond yields rose again on Friday as inflation concerns continued and worries about the Federal Reserve’s credibility persisted. Economic reports topped expectations, including the Chicago PMI, which showed regional business activity picked up more than expected in July. Oil prices also rose as the US-Iran war showed no movement toward a diplomatic offramp and President Trump expressed doubts about prospects for a negotiated settlement