S&P 500 and Nasdaq Slide as Tech Sells Off and Treasury Yields Surge
CNBC reported Friday that major U.S. equity indexes retreated sharply as a technology-sector selloff and surging government bond yields combined to end a record-breaking week on a sour note.
The S&P 500 declined 0.9%, while the Nasdaq Composite shed 1.3%. The Dow Jones Industrial Average fell roughly 407 points, or 0.8%.
Tech Stocks Bear the Brunt of the Losses
Semiconductor and chipmaker shares led the damage. Intel dropped 6% on the session. Advanced Micro Devices and Micron Technology fell 3% and 5%, respectively. Nvidia declined 3%, and newly listed Cerebras Systems — which had surged 68% on its Nasdaq debut Thursday — gave back 5%.
Adam Crisafulli of Vital Knowledge wrote that the technology group had made an “extremely unsustainable move” in recent weeks, leaving it exposed to profit-taking regardless of any news catalyst.
Microsoft bucked the trend. Shares rose 3% after hedge fund manager Bill Ackman disclosed that his firm Pershing Square had built a new stake in the company.
Yields Climb as Inflation Data Weighs on Sentiment
Bond markets amplified the pressure on equities. The 30-year Treasury yield jumped more than 10 basis points to top 5.1%, its highest reading since May 2025 and approaching levels not seen since late 2023. Inflation data released across the week painted a picture of price pressures rebuilding, fuelled partly by elevated oil prices tied to Middle East tensions.
West Texas Intermediate crude futures climbed 3% to $104 per barrel. Brent futures rose a similar amount to $109. Markets also registered President Donald Trump’s warning on Fox News that he would not remain “much more patient” with Iran, comments that added a geopolitical premium to crude.
Trump-Xi Summit Fails to Deliver Hoped-For Deals
Investor disappointment over the conclusion of talks between Trump and Chinese President Xi Jinping also weighed on sentiment. While both sides agreed the Strait of Hormuz must stay open, no major trade or policy agreements emerged. Boeing extended Thursday’s nearly 5% drop by falling a further 2% after Trump confirmed China would purchase 200 of the planemaker’s jets — only 50 more than earlier expectations had anticipated.
Background: A Rally That Showed Signs of Fragility
Thursday’s session had appeared euphoric. The Dow reclaimed 50,000, and the S&P 500 closed above 7,500 for the first time. But portfolio manager Jed Ellerbroek of Argent Capital Management cautioned that the broader market had been lagging behind the largest technology names — a divergence he described as inherently risky. Markets are also adjusting to the prospect of new Federal Reserve Chair Kevin Warsh setting rate policy. Higher yields tend to hit high-growth stocks hardest, making the current environment particularly uncomfortable for a market so dependent on a narrow tech leadership.
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