Stock Market Retreats as Tech Sector Slumps and Treasury Yields Rise Amid Trump-Xi Summit Outcomes Stocks across major U.S. indices fell sharply on Friday, driven by a sharp decline in technology stocks and a surge in U.S. Treasury yields. The S&P 500 dropped 1%, while the Nasdaq Composite lost 1.4%, and the Dow Jones Industrial Average fell 0.7% after a volatile trading session. The downturn followed a summit between President Donald Trump and Chinese President Xi Jinping, which failed to deliver significant policy breakthroughs, leaving investors wary of economic uncertainty. The tech sector was a key drag on the market, with major companies like Intel, Advanced Micro Devices, and Micron Technology all declining by around 5%. Nvidia and Cerebras Systems also saw steep losses, with the latter dropping 4% despite a 68% surge the previous day. Analysts noted that the tech sector had experienced an "extremely unsustainable move" in recent weeks, making it vulnerable to profit-taking. However, Microsoft stood out as an exception, rising nearly 2% after Bill Ackman of Pershing Square revealed the hedge fund had built a position in the company. Rising Treasury yields further pressured equities, with the 30-year Treasury rate surpassing 5.1%—its highest level since 2025. Higher yields, combined with concerns over inflation, raised fears about the impact on high-growth tech stocks. Reports indicated that inflation was rebounding, partly due to elevated oil prices linked to the Middle East conflict. Oil prices rose sharply on Friday, with U.S. West Texas Intermediate futures climbing 3% to $104 per barrel and international Brent crude gaining 2% to $108. The Trump-Xi summit also left investors disappointed, as no major deals were announced.#microsoft #gemini #xi_jinping #pershing_square #trump_donald
