S&P 500 and Nasdaq Head for First Weekly Loss Since Late July as Treasury Yield Surge Batters Stocks

U.S. stock futures bounced on Friday morning, with Dow futures up roughly 199 points or 0.4%, S&P 500 futures gaining 0.3%, and Nasdaq-100 contracts rising 0.6%, as investors sought footing after a bruising week driven by surging Treasury yields. The rebound follows steep Thursday losses that left the S&P 500 down about 1.9% for the week and the Nasdaq Composite off 2.5%, putting both on pace to snap three consecutive weeks of gains. The Nasdaq 100 was also working to break a five-day losing streak.

Rising sovereign bond yields, particularly at the long end of the curve, have hammered capital-intensive technology and AI names such as Nvidia throughout the week. Fixed-income strategists trace the move to a combination of persistent inflation concerns, a ballooning federal budget deficit, elevated oil prices, and a higher term premium demanded by investors to hold U.S. debt. Treasury Secretary Scott Bessent announced Thursday plans to expand the government's bond buyback program beyond the current $4 billion-per-issue cap, calling it a signal that yields do not reflect underlying fundamentals, but markets have not been soothed by the move.

Investors on Friday were also watching for further details on President Trump's stated economic pressure campaign against Iran.