US Stock Market Today: Wall Street Pulls Back From Records After Trump-Xi Summit Falls Short on Deals

US stocks fell on Friday as higher Treasury yields, rising oil prices, and weakness in technology shares weighed on Wall Street. The S&P 500 lost ground after closing above 7,500 for the first time on Thursday, while the NASDAQ led the decline as investors reduced exposure to high-growth stocks.

Tech Stocks Pull Back After Strong Rally

The NASDAQ fell more than 1% as chip- and artificial intelligence-linked stocks came under pressure. NVIDIA, AMD, Intel, and Micron all traded lower as investors took profits after a sharp rally in recent weeks.

Adam Crisafulli of Vital Knowledge questioned the strength of the move, saying the group had seen an ‘extremely unsustainable move’ and remained open to profit-taking. His comment showed doubt over whether the recent tech-led rally could continue without broader market support.

Treasury Yields Rise as Inflation Worries Grow

Bond yields climbed sharply after recent inflation readings renewed concerns about price pressure. The 10-year Treasury yield moved near 4.57%, while the 30-year yield rose above 5.1%, reaching its highest level in nearly a year.

Higher yields often pressure growth stocks because they reduce the value of future earnings. As a result, technology shares faced heavier selling than defensive areas of the market. Investors also watched whether the Federal Reserve may need to keep rates higher for longer.

Kiran Ganesh of UBS Global Wealth Management said markets were reacting to stronger inflation data and steady economic activity. He added that traders were pricing in some risk that central banks may need to raise rates again. His quote reflected doubt over the market’s earlier hopes for easier policy.

Oil Prices Add Pressure After Middle East Tensions

Oil prices rose as traders reacted to fresh uncertainty around the Middle East conflict. Brent crude traded near $108 a barrel, while US West Texas Intermediate moved above $104.

The rise in oil prices increased concern that energy costs could keep inflation elevated. Investors also remained alert after President Donald Trump said he would not be ‘much more patient’ with Iran. That statement added caution before the weekend.

Peter Tuz, president of Chase Investment Counsel, said there was ‘real fear’ that inflation had become embedded in the economy. He also noted that Friday trading added caution because investors feared more Middle East news during the weekend. His remarks showed market doubts over inflation and geopolitical risk.

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Trump-Xi Summit Leaves Traders Cautious

Investors also assessed the end of the summit between President Trump and Chinese President Xi Jinping. The meeting produced some business headlines, including Boeing orders, but traders saw no major policy breakthrough.

Market watchers said investors had expected more progress on trade, technology, and the Iran conflict. Chip stocks also declined after the summit ended without a clear deal on NVIDIA shipments to China. Beijing has not formally approved shipments of NVIDIA’s H200 chips, despite US export authorization.

Moreover, Boeing shares moved lower after Trump said China agreed to buy 200 jets. Traders viewed the figure as limited because it was only 50 more than earlier expectations.

Market Breadth Weakens Beneath Major Indexes

The selloff followed a record-setting session on Thursday, when the Dow reclaimed 50,000 and the S&P 500 closed above 7,500. However, Friday’s action showed that the rally still depended heavily on large technology names.

Keith Lerner of Truist Advisory Services said the broadening trade had ‘really fizzled out.’ He added that broad indexes looked firm mainly because of the heavy weight of technology shares. His quote raised doubt over the strength of the wider market rally.

Energy and financial stocks held up better than most sectors, while materials and technology lagged. Declining stocks outnumbered advancing names on both the NYSE and NASDAQ, showing broad selling pressure.

Wall Street now faces a mix of rising yields, expensive oil, and questions over the strength of the AI trade. Traders will watch inflation data, Fed rate expectations, and Middle East updates for the next direction in stocks.

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