Stocks bounced back from Thursday's broad selloff on Friday, with strength across most areas of the market helping the major averages recover a portion of their losses. The S&P 500 (+0.4%) and Nasdaq Composite (+0.4%) posted modest gains, while the DJIA (+1.0%) outperformed as broader participation and its relatively limited exposure to semiconductor weakness worked in its favor. The rebound extended well beyond the large-cap benchmarks. The Russell 2000 (+0.9%) outperformed, while the S&P MidCap 400 (+0.4%) finished in line with the S&P 500.

The utilities sector (-2.3%) was the only S&P 500 sector to post a sizable decline. A continued rally in precious metals provided one of the clearest sources of leadership. The materials sector (+2.2%) topped the sector standings as Newmont Corporation (NEM 131.58, +3.94, +3.09%) and Freeport-McMoRan (FCX 76.67, +5.45, +7.65%) posted strong gains. Gold futures jumped $110.50 (+2.4%) to $4,680.10 per ounce, extending their August advance to nearly $600 per ounce, while silver added 2.1% to $69.56 per ounce.

The health care sector (+1.3%) also remained near the top of the standings as Moderna (MRNA 145.13, +11.81, +8.86%) rebounded after giving back a portion of Wednesday's massive cancer-vaccine-driven rally on Thursday.

Strength in banking and crypto-related names helped the financials sector (+1.0%) outperform. Robinhood Markets (HOOD 108.13, +13.03, +13.70%) and Coinbase Global (COIN 186.49, +14.14, +8.20%) were among the S&P 500's strongest components as Bitcoin extended its surge this week, providing another source of support for a sector that also benefited from gains across several large banks.

Company-specific catalysts contributed to the consumer discretionary sector's (+0.9%) advance. Tesla (TSLA 362.86, +17.73, +5.14%) rallied after Nevada approved robotaxi services in Clark County, while Target (TGT 165.42, +7.17, +4.53%) extended its post-earnings momentum to a new multi-year high and Ross Stores (ROST 239.04, +10.05, +4.39%) advanced following its earnings report.

Mega-cap stocks generally participated in the rebound as well. Alphabet (GOOG 341.75, +3.55, +1.05%) and Meta Platforms (META 549.90, +4.07, +0.75%) helped lift the communication services sector (+0.9%), while the Vanguard Mega Cap Growth ETF gained 0.4%.

Semiconductors remained a relative weak spot, although the group improved from its midday levels. The PHLX Semiconductor Index finished 0.5% lower, capping a difficult week for chip stocks and keeping the information technology sector flat despite strength in software. Marvell (MRVL 237.04, -13.97, -5.57%) was a notable laggard as investors took profits following Wednesday's nearly 10% surge on news of its expanded custom-silicon agreement with Alphabet.

Crude oil finished little changed, removing one of the headwinds that contributed to Thursday's selloff and leaving the energy sector (-0.2%) with a modest loss. Treasury yields remained an important focus after this week's volatility at the long end, but neither rates nor oil prevented broader participation in Friday's rebound.

Friday's advance provided a constructive end to a volatile week, with strength in materials, financials, health care, consumer names, and small-cap stocks offsetting another softer showing from semiconductors. The broad participation helped the DJIA outperform and allowed the market to recover some of Thursday's decline, even as continued weakness in chip stocks kept the S&P 500 and Nasdaq's gains more modest. Attention will quickly turn to another busy week of potential catalysts. Wednesday's July Personal Income and Spending report will feature the Fed's preferred PCE Price Index, while the earnings calendar includes several retailers and high-profile software companies. NVIDIA's (NVDA 214.76, -2.09, -0.96%) report after Wednesday's close will be the centerpiece, particularly after the sharp swings across semiconductor and AI-related stocks this week.

U.S. Treasuries finished the week on a lower note with little to show for after a brief midweek boost, which followed news that the Treasury will increase the upper limit of its buybacks of longer tenors. The Friday session was a unidirectional affair, as the long bond opened with a slim loss while shorter tenors started near their flat lines before spending the remainder of the session in a steady retreat that lifted the 30-year yield toward its closing level from Tuesday while the 10-year yield finished just below its 2026 high from the end of July. The 2-year note yield settled up four basis points to 4.23% (+6 basis points this week), and the 10-year note yield settled up four basis points to 4.74% (+4 basis points this week). 

• Russell 2000: +21.6% YTD
• S&P Mid Cap 400: +15.9% YTD
• Nasdaq Composite: +12.6% YTD
• S&P 500: +12.1% YTD
• DJIA: +10.9% YTD

Reviewing today's data:

• Flash August S&P Global U.S. Services PMI checked in at 56.8, from the prior reading of 54.6.
• Flash August S&P Global U.S. Manufacturing PMI came in at 53.2, from the previous level of 53.9