US Stocks Pare Gains
US stocks swung lower on Friday as Treasury yields rebounded and rekindled concerns of a deteriorating macroeconomic backdrop. The S&P 500 and the Dow dropped 0.3%, while the Nasdaq 100 inched below the flatline. The yield on the 10-year Treasury note rebounded above the 5% threshold as persistent uncertainty over Middle Eastern oil supply drove fuel and natural gas prices to rise. The prolonged threat of energy inflation has already impacted underlying consumer prices, driving the Fed to hike rates this week, while most FOMC members saw the need for another hike. Credit-sensitive sectors fell with banks and asset managers trading firmly in the red. AI hyperscalers were also mostly lower amid their debt issuance spree for capital expenditure, with Oracle, Microsoft, and Palantir dropping between 3% and 1%. Chip producers rebounded, somewhat recovering since worries over AI security risks drove markets to reconsider the pace of investment on datacenters and chips.
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US stocks swung lower on Friday as Treasury yields rebounded and rekindled concerns of a deteriorating macroeconomic backdrop. 3%, while the Nasdaq 100 inched below the flatline. The yield on the 10-year Treasury note rebounded above the 5% threshold as persistent uncertainty over Middle Eastern oil supply drove fuel and natural gas prices to rise. The prolonged threat of energy inflation has already impacted underlying consumer prices, driving the Fed to hike rates this week, while most FOMC members saw the need for another hike.
Credit-sensitive sectors fell with banks and asset managers trading firmly in the red. AI hyperscalers were also mostly lower amid their debt issuance spree for capital expenditure, with Oracle, Microsoft, and Palantir dropping between 3% and 1%. Chip producers rebounded, somewhat recovering since worries over AI security risks drove markets to reconsider the pace of investment on datacenters and chips.