Wall Street Slips as Tech Sells Off and Treasury Yields Surge

CNBC reported Friday that US equities slid across the board as investors cashed out of technology stocks and a sharp move higher in Treasury yields compounded selling pressure on major indexes.

Tech Giants Bear the Brunt of the Tech Selloff

The S&P 500 fell roughly 1% at the open, while the Nasdaq Composite lost 1.4%. The Dow Jones Industrial Average shed around 336 points, or 0.7%. The tech selloff was broad and punishing. Intel dropped 6%, and both Advanced Micro Devices and Micron Technology surrendered around 5% each. Nvidia pulled back 4%. Cerebras Systems, which had surged 68% in its Nasdaq debut the prior session, gave back some of those gains. Analysts at Vital Knowledge described the group’s recent run as “extremely unsustainable,” flagging continued vulnerability to profit-taking. One notable exception was Microsoft, which climbed nearly 2% after hedge fund manager Bill Ackman disclosed that his firm Pershing Square had built a stake in the company.

Yields and Oil Add to Pressure

Treasury yields jumped sharply, with the 30-year rate topping 5.1% for the first time since 2025. A run of recent inflation data suggested price pressures were re-accelerating, partly driven by elevated oil prices tied to Middle East conflict. US West Texas Intermediate crude rose 3% to around $104 per barrel. International Brent futures gained 2% to roughly $108. Higher long-term yields are particularly damaging to high-growth technology stocks. Their future earnings are worth less when discounted at steeper rates.

Background: A Record-Breaking Rally Showing Cracks

Thursday had been a milestone session. The Dow reclaimed the 50,000 level for the first time, and the S&P 500 closed above 7,500. Stocks have climbed sharply on sustained enthusiasm around artificial intelligence. But the rally’s composition is raising red flags for some strategists. Keith Lerner, chief investment officer at Truist Advisory Services, told CNBC that the much-hoped-for broadening of market gains “has really fizzled out.” He noted that large-cap tech continues to carry the index while broader participation has softened.

Summit Letdown Compounds Market Nerves

Investors were also left cold by the conclusion of a summit between President Donald Trump and Chinese President Xi Jinping. No significant trade or policy agreements were announced. A White House readout confirmed both leaders agreed the Strait of Hormuz should remain open. Boeing slipped a further 2% after Trump announced China would order 200 jets. That figure was only modestly above existing expectations and fell flat with investors. Separately, New York-region factory activity jumped to a four-year high in May, offering a rare bright spot in an otherwise downbeat session.

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