U.S. equities rose on Friday as Wall Street wrapped up a volatile week of trading, with a surge in Treasury yields rippling through financial markets.
The S&P 500 climbed 0.51% last Friday to close the week at 7,743.41, while the Nasdaq Composite (Nasdaq) gained 0.5% to 27,068.72. The Dow Jones Industrial Average (Dow) advanced 478.64 points last Friday, or 0.93% to 51,828.62. With Friday’s gains, the Dow notched a winning week, up 0.3%. The S&P 500 added 1.2%, while the Nasdaq rose 2%.
Also helping sentiment, oil prices slid amid optimism that the Strait of Hormuz could be reopened. West Texas Intermediate crude futures dropped 2.33% last Friday to settle at $92.41 per barrel, while Brent crude futures closed the week at $104.32 a barrel.
The advance was bolstered by technology stocks such as Meta Platforms, which popped nearly 13% last week amid excitement surrounding its artificial intelligence agent, Muse. Information technology rose 3.1% last week, which was the most of any of the S&P 500′s sectors.
The drama continued in the bond market, where the 10-year Treasury yield saw its most rapid one-day increase since early 2025 last Wednesday, climbing to its highest level since 2007, while the 30-year yield reached its highest level since 2004. They closed yielding 5.163% and 5.488%, respectively.
On the economic front, September’s S&P Global Purchasing Managers’ Indexes (PMIs) exceeded expectations, durable goods data was mixed, business investment remained solid, and the current account deficit widened modestly in the second quarter (Q2).
New home sales provided a bright spot for the housing economy.
Looking ahead, investors will focus on personal consumption expenditures (PCE) inflation data, personal income and spending, along with the September jobs report. This week will also include consumer confidence data, and the Institute of Supply Management (ISM) September manufacturing data.
Please click here for the Looking Ahead report written by Wells Fargo. It contains interesting graphs, tables, and charts. Below are excerpts from that research.
Week in review: September 21-25
Economic news
- September’s U.S. S&P Global PMIs exceeded expectations across-the-board. The manufacturing PMI rose to 57.0 from 53.9, surpassing forecasts of 53.7. The services PMI increased to 58.7 from 56.5, well above the 55.8 estimate, and the composite PMI climbed to 58.4 from 56.0, marking its fourth consecutive monthly increase and beating expectations of 55.3.
- Durable goods orders in August unexpectedly came in flat at 0.0% month-over-month (M/M), beating surveyed expectations of declining 0.3% M/M. Meanwhile, durable goods excluding transportation surprised to the downside, only increasing 0.3% M/M versus an expected 0.6% M/M increase.
- Durable goods orders declined for transport equipment, non-defense aircraft and parts, vehicles and parts, and fabricated metal products. Increases were seen in defense aircraft and parts, computers and related products, primary metals and machinery, reflecting pockets of strength in business investment and industrial activity.
- Non-defense capital goods excluding aircraft orders in August exceeded expectations, rising 1.6% M/M after an upwardly revised 0.6% increase in July. The increase was driven primarily by strength in primary metals, machinery, and electrical equipment.
- U.S. Q2 current account balance widened to $246.0 billion from $212.6 billion in the prior quarter, below economists expectations of the balance widening to $257.4 billion.
- The balance of goods and services deficit widened to $199.8 billion versus $158.8 billion from the prior quarter.
- U.S. new home sales rose 6.4% M/M in August to an annualized rate of 684,000, the strongest sales pace of the year. While builder incentives and price concessions likely helped support demand, the sustainability of the rebound remains uncertain as mortgage rates have moved back above 7%, keeping affordability challenges front and center for prospective buyers.
- New home inventory remains elevated at 483,000 units, representing an 8.5-month supply. As builders scale back new starts and work through excess inventory, the median sales price fell 5.8% year-over-year (Y/Y) to $393,700.
Looking ahead to this week: September 28 – October 2
U.S.
- This Week’s primary focus will be Wednesday’s August personal income and spending report, which includes the PCE deflator. Investors will also receive a final reading on Q2 gross domestic product (GDP).
- Attention will then turn to Thursday’s September ISM manufacturing PMI and Friday’s employment report. Additional labor market data includes September’s ADP private-sector employment survey, Challenger job cuts report, and August Job Openings and Labor Turnover Survey (JOLTS).
- Also on the calendar are September consumer confidence and vehicle sales, July house prices, August factory orders, construction spending, advance goods trade balance, and retail inventories.
Asia
- In China, September manufacturing and services PMIs, including both official and private-sector surveys, will be in focus alongside August industrial profits.
- From Japan, attention will center on the third-quarter Tankan survey, August industrial production, retail sales, the jobless rate, housing starts, and the Producer Price Index (PPI) Services Index, along with September Tokyo Consumer Price Index, (CPI), the monetary base, and the final manufacturing PMI.
- Elsewhere, investors will be watching the Reserve Bank of Australia’s policy meeting and key Australian economic data, while South Korea reports industrial production, September CPI, trade balance, and the manufacturing PMI.
Europe
- In Europe, focus will be on the September CPI data, final manufacturing PMIs, and the Eurozone’s August unemployment rate.
- In the U.K., key releases include final Q2 GDP and current account data, along with September home prices, and August consumer credit, mortgage approvals, and money supply.
- Investors will also be watching Germany’s September unemployment data, and August retail sales, as well as France’s August PPI and consumer spending.
