Stocks closed sharply lower Friday as rising Treasury yields and a sell-off in tech stocks dragged major indexes down. Investors were left disappointed after the Trump–Xi summit ended without any major policy breakthroughs, adding pressure to market sentiment.
The S&P 500 fell 1.24% to 7,408.50, while the Nasdaq Composite dropped 1.54% to 26,225.14. The Dow Jones Industrial Average lost more than 537 points, closing at 49,526.17.
Technology stocks led the decline as traders booked profits following recent AI-driven rallies. Intel slid over 6%, AMD and Micron dropped nearly 6%, while Nvidia lost 4.4%. Cerebras Systems also tumbled 10% after its strong Nasdaq debut rally a day earlier. Microsoft stood out as a rare gainer, rising 3% after Pershing Square revealed a stake in the company.
Markets also faced pressure from surging Treasury yields, with the 30-year yield climbing above 5.1% amid growing inflation concerns and elevated oil prices linked to Middle East tensions. Higher interest rates typically weigh on high-growth tech companies.
Oil prices continued to climb, with WTI crude settling above $105 per barrel and Brent crude near $109, after President Trump signaled a tougher stance on Iran.
Investors were also underwhelmed by the outcome of the Trump-Xi summit, as no major trade or economic agreements were announced. Boeing shares extended losses after China’s jet purchase commitment came in below market expectations.
Despite Friday’s decline, U.S. stocks remain near record highs, supported by ongoing enthusiasm surrounding artificial intelligence and large-cap tech companies.
Frequently Asked Questions
Why did the stock market fall sharply on Friday?
The market declined due to a sell-off in tech stocks, rising Treasury yields, and disappointment over the lack of major outcomes from the Trump-Xi summit.
Why are rising Treasury yields negative for stocks?
Higher bond yields increase borrowing costs and can reduce the attractiveness of high-growth stocks, especially technology companies.
Which sectors were hit the hardest in the market drop?
Technology and semiconductor stocks faced the biggest losses, with companies like Intel, AMD, Nvidia, and Micron leading the decline.
How did oil prices impact market sentiment?
Rising oil prices increased inflation concerns, which added pressure on markets and fueled worries that interest rates could stay higher for longer.
