S&P 500 and Nasdaq Slide as Tech Sells Off and Treasury Yields Surge

CNBC reported Friday that U.S. equities retreated sharply, dragged lower by widespread selling in technology shares and a steep rise in government bond yields. The S&P 500 dropped 0.7%, the Nasdaq Composite lost 0.9%, and the Dow Jones Industrial Average shed roughly 379 points.

Tech Stocks Bear the Brunt of the Selloff

Semiconductor and chipmaker names led declines across the board. Intel fell 6%, while Advanced Micro Devices and Micron Technology dropped 3% and 4%, respectively. Nvidia lost 3%. Cerebras Systems, which had surged roughly 68% on its Nasdaq debut the previous day, gave back 4% of those gains.

Adam Crisafulli of Vital Knowledge noted the group had made an “extremely unsustainable move” in recent weeks and remained exposed to profit-taking regardless of news flow. One notable exception was Microsoft, which rose approximately 3% after billionaire investor Bill Ackman disclosed that his firm Pershing Square had built a new stake in the company.

Yields Climb as Inflation Pressures Mount

Treasury yields pushed higher across maturities, with the 30-year rate breaching 5.1% and reaching its highest level since 2025. A string of data releases this week pointed to inflation re-accelerating, partly driven by elevated oil prices tied to ongoing Middle East tensions. WTI crude futures climbed 3% to around $104 per barrel, while Brent gained a similar margin to approximately $108. President Donald Trump separately told Fox News he is running low on patience with Iran and suggested Tehran should pursue a deal.

Trump-Xi Summit Fails to Move Markets

Traders had hoped the summit between Trump and Chinese President Xi Jinping might yield concrete agreements. Instead, the meeting concluded with limited tangible outcomes. One headline involved China agreeing to purchase 200 Boeing jets, only 50 more aircraft than previously anticipated. Boeing shares extended earlier losses, falling around 2% on top of a nearly 5% drop the prior session.

Background: A Record Run Now Showing Cracks

Thursday’s session had been a milestone. The Dow reclaimed 50,000 and the S&P 500 closed above 7,500 for the first time. The recent rally has been fuelled largely by artificial intelligence enthusiasm, lifting the largest tech names far ahead of the broader market. Portfolio manager Jed Ellerbroek of Argent Capital Management cautioned that a market driven by a single theme is “inherently more risky.” The Russell 2000 small-cap index bore out that concern, falling more than 2% on the day and on pace to snap a seven-week winning streak. Retail stocks also weakened notably, with the SPDR S&P Retail ETF heading toward its worst weekly performance since October 2025.

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