Stock Market Pullback as Treasury Yields Spike on Inflation Concerns
U.S. stock markets fell sharply on Friday as rising Treasury yields and elevated oil prices spooked investors, with the S&P 500 dropping 1.24% and the Nasdaq falling 1.54%. Technology stocks were hit hardest as investors reassess the economic outlook.
Market Decline Accelerates
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 1.24% to end at 7,408.50, while the Nasdaq Composite slipped 1.54% to 26,225.14. The Dow Jones Industrial Average was down 537.29 points, or 1.07%, and closed at 49,526.17.
Tech Selloff Deepens
Investors took profits in tech after the group saw sharp gains recently. Notably, Intel retreated more than 6%, while Advanced Micro Devices and Micron Technology lost 5.7% and 6.6%, respectively. The 10-year Treasury note yield spiked nine basis points to 4.55%, the highest in a year, indicating rising concerns about war-related inflation leading to possible rate hikes.
Consumer Weakness Compounds Concerns
Retail stocks are under pressure head of a major week of earnings for the sector as investors grow increasingly cautious on the consumer backdrop and discretionary spending. The SPDR S&P Retail ETF is down more than 6% this week, on pace for its fourth straight weekly decline and its worst weekly performance since October 2025.