US shares rebounded on Friday as investors looked past another rise in Treasury yields following the previous session’s sharp sell-off.
The S&P 500 gained 0.43% to 7,674.37, while the Nasdaq Composite rose 0.43% to 26,180.45. The Dow Jones Industrial Average climbed 517.80 points, or 0.98%, to 53,277.01, supported by gains in healthcare stocks including Merck and Johnson & Johnson.
Financials also strengthened, with cryptocurrency-related stocks advancing as bitcoin posted a 22% weekly gain. Robinhood jumped almost 14% and Coinbase added 8%, while materials gained 2%.
Despite Friday’s rebound, Wall Street finished the week lower. The S&P 500 lost 1.4% and the Nasdaq fell 2%, snapping three-week winning streaks, while the Dow declined 0.9% for its second consecutive weekly fall.
Higher Treasury yields remained a key pressure on markets as investors weighed persistent inflation risks and elevated oil prices. The weakness extended beyond the US, with the MSCI All Country World Index falling almost 1% for the week.
Australian Market Outlook
Australian investors enter the final week of the August reporting season with earnings expectations under pressure as companies respond to softer economic conditions with cautious outlooks and guidance.
Analysts have cut earnings forecasts for the 2026–27 financial year by around 2%, according to Goldman Sachs, while earnings revisions have increasingly shifted towards downgrades.
Consumer conditions will be a particular focus this week after retailers including JB Hi-Fi, Myer and Nick Scali reported difficult trading conditions. Investors will look to upcoming results from the major supermarkets, Wesfarmers, Harvey Norman and Qantas for further indications of how higher interest rates and energy costs are affecting households and businesses.
Reporting on Monday includes Ampol, Adairs, Aussie Broadband, Ansell and Bendigo and Adelaide Bank, as the final stretch of the reporting season gets under way.
