Oil and yields ease, and stocks end a wild week higher

Good morning. Wall Street ended a roller-coaster week with a rebound. After two straight down days, stocks rose on Friday, and the key was oil and yields. Reports that the US and Iran are negotiating a phased reopening of the Strait of Hormuz pulled oil lower and briefly cooled the rise in Treasury yields.

That is a breather for rates, not the end of the risk. The 10-year stayed near 5.1% and some maturities hit levels last seen about 25 years ago. Schwab sees one more hike this year as a sure thing and a second as very likely, and Morgan Stanley admitted it was wrong on the dollar and dropped its bearish call. So there are warnings that a strong September jobs report next week could jolt stocks and bonds together.

The summit, meanwhile, delivered more show than substance. The trade truce set to expire in November was extended, but the two sides did not agree on tackling AI threats together. Details of the trade deal come out Monday. On AI, one count shows AI-related bond issuance topped $500 billion this year, and more people are pointing to that debt as a weak spot in the investment boom.

In crypto, the exchange Bitget halted withdrawals after a hack of more than $300 million. North Korean hackers are suspected, and the company says user assets are safe.