US stocks climb as bitcoin hits $77,000 ahead of Iran sanctions reveal
The Dow Jones and S&P 500 rose on Friday, buoyed by a sharp bitcoin rally and anticipation of Treasury Secretary Scott Bessent’s Monday announcement on economic measures against Iran.
US equity markets closed higher on Friday, with the Dow Jones Industrial Average gaining 0.6 per cent and the S&P 500 adding 0.3 per cent. The tech-heavy Nasdaq Composite rose 0.2 per cent, recovering from the previous day’s decline. Despite the positive close, stocks were still on track for weekly losses after a bond sell-off earlier in the week placed pressure on capital-intensive artificial intelligence and technology names.
The session was defined by a significant surge in cryptocurrency prices. Bitcoin climbed to $77,000, marking its highest level since May and its best week in nearly three years. The digital asset rose 7 per cent on the day and approximately 18 per cent over the preceding 48 hours. This rally lifted crypto-related equities, with Strategy jumping over 7 per cent and Mara Holdings rising 6 per cent. Circle and Robinhood both gained 5 per cent, while Hut 8, Galaxy Digital, and Coinbase advanced by 4 per cent.
Investors are now focused on Treasury Secretary Scott Bessent, who is scheduled to hold a press conference on Monday to unveil the United States’ plan to economically isolate Iran. Bessent has described the initiative as the greatest coordinated economic isolation in history, urging allies to join the effort. The move follows President Donald Trump’s threats to inflict tremendous economic consequences on any nation trading with Iran, a stance that has heightened tensions with China, which sources a significant portion of its oil from the Gulf.
The market reaction to recent fiscal moves has been mixed. On Thursday, Bessent announced plans to expand bond buybacks, increasing the programme size to at least $4 billion per issue to stabilise yields. However, relief in the bond market was short-lived, with 10-year and 30-year Treasury yields snapping back to higher levels as investors viewed the measure as a limited fix. Bernstein strategist Gautam Chhugani noted that the strong trigger in bitcoin was driven by the Treasury’s move to buy back bonds, citing bitcoin’s historical positive reaction to liquidity expansion.
In the energy sector, Brent crude prices advanced for a fifth consecutive day to about $94 a barrel, reaching the highest level this month. The rise in oil prices reflects the ongoing geopolitical tensions and the potential impact of the new economic isolation plan on global supply chains.
Elsewhere, S&P Global’s Purchasing Managers’ Index data is expected to provide insight into the health of the manufacturing and services sectors. The August preliminary manufacturing PMI is expected at 53.8, while the services PMI is forecast at 53.9. Investors will also look ahead to the Federal Reserve’s Jackson Hole Symposium and Nvidia’s second-quarter earnings next week.
