ASX set to rise as Wall Street advances; $A, bitcoin stronger

US stocks rose and trimmed their losses from a shaky week. That was even though the bond market, which has been the centre of Wall Street’s action, remained jumpy and continued to add pressure.

The S&P 500 rose 0.4 per cent for just its second gain in the six days since setting its all-time high last week. The Dow Jones jumped 517 points, or 1 per cent, and the Nasdaq composite climbed 0.4 per cent.

The Australian sharemarket is set to rise, with futures on Saturday pointing to a gain of 41 points or 0.5 per cent, at the open. The Australian dollar is stronger at US71.64¢. Reporting season continues with Ampol and Bendigo and Adelaide Bank among the companies set to report results today.

Ross Stores helped lead the way and rose 4.4 per cent after reporting stronger profit and revenue for the latest quarter than analysts expected. CEO Jim Conroy said it saw both an increase in new customers and more interest from existing customers, while the off-price retailer at the same time benefited from refunds on tariffs.

Most US companies have reported bigger profits for the spring than analysts expected, which has helped drive stocks to records recently. Stock prices tend to follow the path of corporate profits over the long term.

Hopes for continued profit growth got a boost from a preliminary report by S&P Global suggesting growth for US business activity hit a 52-month high. But the other big lever that helps set stock prices, interest rates, has been much shakier.

After soaring through the summer and then hesitating following this week’s surprise move by the US Treasury Department to repurchase more US government bonds, yields climbed further on Friday.

The yield on the 10-year Treasury rose to 4.73 per cent from 4.69 per cent late Thursday. It’s back above its level from before the Treasury market made its move, which analysts said at the time would likely have only a temporary effect. The 30-year Treasury yield, which the Fed is also targeting with its bond repurchases, also rose and is near its highest level since 2007.

Contributing to Friday’s gains for bond yields was continued uncertainty about when the war with Iran will allow oil tankers to freely exit the Persian Gulf again. That caused oil prices to rise, which affects Treasury yields because they increase worries about inflation.

The price for a barrel of Brent crude oil settled at $US92.67, up 0.8 per cent.

Besides inflation, concerns about the fast-rising debt for the US government have also been sending yields upward. Higher yields can slow the economy and undercut prices for all kinds of investments.

One of the biggest beneficiaries of US Treasury Secretary Scott Bessent’s move to try to get longer-term yields lower is bitcoin. Cryptocurrencies often rise when interest rates are lower and more money is flowing through the financial system. Hopes for legislation in Washington to help the crypto industry have also helped it.

Bitcoin has climbed above $US77,000 from less than $US63,000 a week ago. That helped stocks in the crypto industry lead Wall Street.