Technology stocks pulled back from record highs after stronger US activity revived expectations for another Federal Reserve rate increase. The Nasdaq Composite fell 1.1% to 26,936 after two consecutive record closes, while the S&P 500, Dow and Russell 2000 also declined, with smaller companies facing the greatest pressure. September’s composite PMI (business activity gauge) rose to 58.4, its highest since July 2021, and the 10-year Treasury yield climbed above 5.1%, its highest level since 2007. Markets then turned to Donald Trump and Xi Jinping’s Washington meeting, where the US-China trade truce, artificial-intelligence restrictions, semiconductor exports, supply chains and Taiwan are key issues for technology companies. Oil added to market uncertainty as Brent rose more than 4% toward $104 after Iran’s president rejected US pressure and imposed conditions on reopening the Strait of Hormuz. The dollar moved toward a two-month high as traders put the probability of an October Fed increase at roughly 70%, while gold fell about 1.6% toward $4,290 and Bitcoin eased toward $84,000 after reaching $87,400. Costco’s results after Thursday’s close will provide another indication of consumer spending, inflation and the economy’s ability to withstand higher rates.