US stock indices closed higher on Friday as Bitcoin surged to a three-month high and investors weighed mixed economic data against ongoing geopolitical tensions in the Middle East.

Key Points

• The S&P 500 rose 0.43%, the Dow Jones Industrial Average gained 0.98%, and the Nasdaq 100 increased 0.33%.
• Bitcoin rallied over 6% to a three-month high, driving significant gains for cryptocurrency-exposed stocks like Coinbase and MicroStrategy.
• The US August services PMI reached a 4.5-year high of 56.8, while manufacturing PMI fell to 53.2.
• Crude oil prices remained volatile as markets awaited details on US plans to isolate the Iranian economy.
• The 10-year T-note yield rose 3 basis points to 4.73%, putting pressure on utility stocks and limiting broader market gains.
• S&P 500 companies are reporting strong Q2 earnings growth, currently tracking at approximately 32% year-over-year.

Why it Matters

The market's resilience reflects a tug-of-war between robust corporate earnings and macroeconomic uncertainty driven by rising bond yields and geopolitical instability. Investors are closely monitoring the US-Iran conflict and upcoming Treasury announcements, as these factors continue to influence energy prices and global risk sentiment.