S&P and Nasdaq Futures Slide as Tech Selling and Rising Yields Grip Markets
CNBC reported Friday that U.S. stock futures fell sharply to open the session, dragged lower by a wave of technology selling and a fresh spike in Treasury yields.
S&P 500 futures dropped 1.2% and Nasdaq futures fall registered a steeper 1.6% decline. Dow Jones futures shed roughly 440 points, equal to a 0.9% loss.
Tech Giants Bear the Brunt of the Selling
Chipmakers led the retreat in premarket trading. Intel futures fell around 4%, while Advanced Micro Devices and Micron Technology each lost approximately 3%. Nvidia slipped 2%. Cerebras Systems, which had surged 68% on its Nasdaq debut Thursday, gave back 3% of those gains on Friday. Analyst Adam Crisafulli of Vital Knowledge wrote that the tech group had made an “extremely unsustainable move” in recent weeks and was ripe for profit-taking. Microsoft bucked the trend, however, gaining around 0.6% after hedge fund manager Bill Ackman disclosed via X that his firm Pershing Square had built a new stake in the company.
Bond Yields and Oil Add Pressure
Treasury yields climbed sharply, with the 30-year rate crossing 5.1% and approaching its highest point since 2023. A string of inflation readings this week reinforced concerns that price pressures are re-accelerating. Elevated oil prices are adding to that picture. West Texas Intermediate crude futures rose 3% to around $104 per barrel, while Brent futures gained 2% to roughly $108. Higher yields tend to weigh hardest on growth-oriented tech stocks, which rely on low discount rates to justify lofty valuations.
Trump-Xi Summit Delivers Few Breakthroughs
Markets had anticipated firmer trade signals from the summit between President Donald Trump and Chinese President Xi Jinping, but the meeting wrapped without major policy announcements. The two leaders agreed that the Strait of Hormuz must stay open, a White House official confirmed. Boeing shares extended losses after Trump announced China had agreed to purchase 200 Boeing jets, only 50 more than prior expectations. Boeing had already fallen nearly 5% the session before.
Record Run Intact but Breadth Remains Thin
Despite Friday’s pullback, the broader weekly trajectory stays positive. The S&P 500 and Nasdaq Composite are both tracking a seventh consecutive weekly gain. The Dow is on pace for a sixth winning week in seven. The S&P 500 crossed 7,500 for the first time on Thursday, and the Dow reclaimed the 50,000 level. Still, Chief Investment Officer Keith Lerner of Truist Advisory Services told CNBC that “the broadening trade has really fizzled out,” warning the rally remains heavily concentrated in large-cap tech. Separately, the Empire State Manufacturing Index surged to 19.6 in May, a four-year high, though its prices-paid component hit levels last seen in 2022.
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