The Vanguard S&P 500 ETF (VOO) declined 0.2% on Friday, mirroring a broader pullback in U.S. equities as bond yields climbed higher. The 10-year Treasury note yield surged 7 basis points to 5%, while the 2-year yield rose 7 basis points to 4.75% and the 30-year yield increased 4 basis points to 5.34%. This rise in yields came as Kansas City Fed President Jeffrey Schmid delivered a hawkish signal, defending the need for rate hikes due to persistent inflation above 3%.
Bitcoin pushed through the $80,000 mark, driving a rally in crypto-related equities. Strategy Inc. (MSTR) surged 12.9% to $149.25, and Coinbase Global Inc. (COIN) jumped 10.6% to $192.32, supported by an SEC innovation exemption enabling trading in tokenized stocks.
On the equity front, the Dow Jones Industrial Average slipped 0.4% to 51,555.73, with International Business Machines Corp. (IBM) falling 3% as the heaviest weight on the index. The Nasdaq 100 hovered just below the flatline at 29,425.62, while the Russell 2000 dropped 0.9% to 2,848.24, marking a 3.7% decline for September.
In sector performance, the Materials Select Sector SPDR Fund (XLB) was the worst performer, down 1.5%. Semiconductors bucked the trend, with the VanEck Semiconductor ETF (SMH) gaining 0.6%. Lam Research Corp. (LRCX) led chip gains, rising 5.1%, while Applied Materials Inc. (AMAT) added 4.1%.
