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Update: Equities Rebound Intraday as Yields Rise

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Update: Equities Rebound Intraday as Yields Rise

(Updates with latest market prices and developments.)

US equities rebounded intraday following Thursday's steep losses, but Wall Street was still headed for weekly declines amid rising bond yields.

The Dow Jones Industrial Average was up 0.8% at 53,169.5 after midday Friday. The S&P 500 and the Nasdaq Composite each rose 0.5% to 7,678.1 and 26,187.6, respectively. Among sectors, materials paced the gainers, while utilities saw the steepest decline.

The three indexes dropped to their lowest levels in more than two weeks on Thursday.

The Dow was on track for its second consecutive weekly fall, while both the S&P 500 and the Nasdaq headed toward their first weekly losses following three consecutive weekly advances.

US Treasury yields were higher intraday, with the two-year yield increasing 4.5 basis points to 4.23% and the 10-year rate gaining 3.4 basis points to 4.73%. The 30-year rate was up 3.7 basis points at 5.27%.

"The past 24 hours saw renewed pressure in bond markets as the rally following the US Treasury's announcement on Wednesday that it would expand its buyback operations faded," Deutsche Bank said in a report.

The Treasury Department earlier this week said it will at least double the size of its buybacks for longer-dated Treasuries, to $4 billion per operation.

Treasury Secretary Scott Bessent told CNBC on Thursday that his department could increase its planned buybacks to more than $4 billion per issue.

West Texas Intermediate crude oil was up 0.4% at $87.18 a barrel, while Brent rose 0.9% to $94.59. The benchmarks were on track to log their second consecutive weekly gains.

In economic news, US private-sector output growth hit a 52-month high amid a surge in services activity, while price pressures eased and employment rose sharply, S&P Global's (SPGI) flash purchasing managers' index showed.

In company news, Ross Stores (ROST) jumped 5.8% intraday as the off-price apparel and home fashion chain lifted its full-year earnings outlook on the back of stronger-than-expected fiscal second-quarter results.

BJ's Wholesale Club's (BJ) fiscal second-quarter results came in ahead of Wall Street's estimates, prompting the warehouse club operator to lift its full-year earnings outlook. The stock was up 5% intraday.

Walmart (WMT) was down 0.9%, the worst performer on the Dow, after a 9.2% slump in the previous session. The retailer's mixed second-quarter performance has raised questions around the trajectory of its core US business, though its new business model could drive growth in the long term, UBS said in a note.

Spot gold advanced 2.4% to $4,622.94 per troy ounce, while silver climbed 2.6% to $70.70 per ounce.

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