Stock Market Falls as Nasdaq Declines on Tech Weakness; Trump-China Summit Yields Minimal Breakthrough
U.S. stock markets fell Friday as technology stocks retreated following record highs the previous day. After President Trump's two-day summit in China with President Xi Jinping ended without major trade breakthroughs, investors took profits amid rising Treasury yields and uncertainty.
Markets Mixed After China Summit
Stocks fell on Friday, bogged down by losses in technology stocks and a rise in U.S. Treasury yields, after a summit between President Donald Trump and Chinese President Xi Jinping ended and left traders worried about no major policy breakthroughs. The S&P 500 shed 0.9%, while the Nasdaq Composite lost 1.3%. The Dow Jones Industrial Average was down 407 points, or 0.8%.
Oil Prices Rise on China Deal
Oil prices rose Friday after U.S. President Donald Trump said China has agreed to purchase oil from America, following talks with Chinese leader Xi Jinping. International benchmark Brent crude futures for July gained 1.49% at $107.30 a barrel. U.S. West Texas Intermediate futures for June advanced 1.55% at $102.74 per barrel. Trump said in a pre-recorded interview with Fox News that China agreed to buy oil from the U.S., with Chinese ships going to Texas, Louisiana and Alaska.
Tech Sector Profit-Taking
Investors took profits in tech after the group saw sharp gains recently. Notably, Intel retreated 6%, while Advanced Micro Devices and Micron Technology lost 3% and 5%, respectively. Nvidia dropped 3%.
Manufacturing Strength in New York
Factory activity in the New York region jumped to its highest level in more than four years during May, according to a report Friday. The Empire State Manufacturing index leaped to 19.6 for the month, much better than the 7.0 estimate and the highest level since April 2022.