Stocks Climb as Bitcoin Rally Lifts Crypto Shares – Europe Market Wrap

US equities advanced, with crypto-linked stocks the biggest gainers as Bitcoin headed for its best week in more than three years. Treasuries trimmed early gains as oil wavered.

S&P 500 futures were up 0.3%, while the index remained on track for its first weekly loss this month. Strategy, Coinbase and Robinhood rallied in premarket trading as Bitcoin raced toward $78,000. Europe’s Stoxx 600 was on course to dodge its worst run of losses in nearly a decade. Chipmakers drove an advance in Asia.

After days of swings that saw long-dated yields hit their highest levels in decades, Treasuries were little changed Friday. Brent crude hovered near $94 a barrel. Gold hit the highest level since May. The Dollar remained under pressure, falling 0.3%.

Investors are assessing the fallout from a week that saw bond yields spike on worries about inflation and spendthrift governments, a surge that prompted the Treasury to intervene to curb long-dated borrowing costs. They are now awaiting a promised new initiative from Treasury Secretary Bessent aimed at fiscal consolidation.

Stronger-than-expected manufacturing data helped European equities snap a seven-day losing streak. Still, the Stoxx 600 is less than 2% below its record high, and Goldman Sachs and JPMorgan remain among the most optimistic about the region’s prospects, a survey showed.

Bitcoin rallied as much as 9.4% and headed for its best weekly advance since 2023. A short squeeze triggered by Bessent’s midweek announcement of bigger buybacks of long-dated bonds remains a major driver of the gains. Nearly $29 billion flowed into US equity funds in the week through Aug. 19, the largest inflow in three weeks, according to Bank of America.