US Stocks Rise as Bond Market Pressures Ease

U.S. stocks rose on Friday, August 21, 2026, trimming losses from a volatile week as bond market pressures eased and strong corporate earnings provided support. The S&P 500 gained 0.3%, the Dow Jones Industrial Average climbed 250 points, or 0.5%, and the Nasdaq composite added 0.3% in morning trading. The advance followed a midweek rebound on Wednesday, August 19, when markets had also risen after a key intervention from the U.S. Treasury Department.

The recent market turbulence has been driven by sharp swings in the bond market. Yields on long-term government bonds surged through the summer on concerns about inflation, fueled in part by the ongoing conflict with Iran and its impact on oil prices. This pressure prompted the U.S. Treasury Department to announce on Wednesday, August 19, that it would at least double the size of its planned purchases of longer-term Treasurys from September 9 through November 4. The move was intended to provide greater liquidity in the bond market.

Following that announcement, the yield on the 10-year Treasury note fell to 4.64% from 4.71% late Tuesday. On Friday, the yield ticked up slightly to 4.71% but remained below its recent highs. The yield...