Markets Rise as Treasury Buybacks Support Bonds

U.S. stock indexes closed higher on Friday, with the S&P 500, Nasdaq 100, and Dow up, though weekly losses lingered as investors weighed elevated bond yields and ongoing geopolitical tensions. Fresh data showed the fastest expansion in U.S. services activity in nearly two years, helping risk appetite despite higher longer-dated yields tied to inflation concerns and Treasury intervention. The rally came as the government expanded its bond-buyback program to longer maturities, keeping pressure on long-dated debt and contributing to a seesaw market dynamic. Tech and hyperscale names led gains, while higher-yielding segments and Walmart after an earnings miss faced selling pressure; Nvidia results ahead of next week added to the event risk. Oil strength and Iran-related tensions tied into the uneasy backdrop, with focus turning to next week's Nvidia results and the Jackson Hole symposium. Analysts remain wary of persistent inflation, deficits, and the potential for further yield volatility as AI-driven earnings momentum looms.