US stocks slip as Treasury yields rebound above 5%

  • US stocks fell Friday as Treasury yields rebounded and renewed macroeconomic concerns.
  • 10-year Treasury yields rose above 5% as Middle Eastern oil uncertainty lifted energy prices.
  • The Federal Reserve raised rates this week, while most FOMC members favored another increase.

US stocks moved lower Friday as a rebound in Treasury yields renewed concern about the macroeconomic outlook. The S&P 500 and Dow each declined 0.3%, while the Nasdaq 100 edged below unchanged. The 10-year Treasury yield climbed back above 5% as uncertainty over Middle Eastern oil supplies pushed fuel and natural-gas prices higher. The prolonged risk of energy-driven inflation has already affected underlying consumer prices and prompted the Federal Reserve to raise interest rates this week; most FOMC members also supported another increase. Banks and asset managers fell as credit-sensitive sectors weakened. AI hyperscalers (large firms operating extensive computing infrastructure) mostly declined amid heavy debt issuance to fund capital spending, with Oracle, Microsoft and Palantir losing between 1% and 3%. Chipmakers recovered somewhat after concerns about AI security risks had prompted investors to reassess the pace of spending on data centers and chips.

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