Wall Street
U.S. stocks pulled back sharply on Friday as a trio of headwinds — surging Treasury yields, climbing oil prices, and uncertainty around the Federal Reserve’s leadership change — combined to unwind the previous session’s record-setting rally. All three major indexes closed firmly in the red, with technology and semiconductor names bearing the brunt of the selling.
What Moved Markets
The S&P 500 fell 92.74 points, or 1.24%, to close at 7,408.50, giving back Thursday’s gains that had pushed the benchmark to a fresh all-time high above 7,500. The Dow Jones Industrial Average dropped 537.29 points, or 1.07%, finishing at 49,526.17. The Nasdaq Composite led losses, sliding 410.08 points, or 1.54%, to settle at 26,225.14.
The selloff had multiple catalysts. The 10-year Treasury yield jumped nine basis points to roughly 4.56%, its highest level in about a year, while the 30-year yield pushed above 5.1%. Rising yields put particular pressure on growth stocks, where valuations depend heavily on future earnings being discounted at lower rates. Meanwhile, Brent crude surged nearly 3% to around $109 per barrel after President Trump rejected a proposed framework for easing tensions with Iran, raising fears of further disruption to Middle Eastern shipping routes and higher energy costs.
Adding to the uncertain mood, Friday marked the official end of Jerome Powell’s tenure as Federal Reserve Chair. Kevin Warsh, confirmed by the Senate in a 54-45 vote earlier this month, takes the helm at a delicate moment. Investors are watching closely for any early signals about how Warsh may differ from Powell on interest rates, especially with inflation concerns resurfacing alongside elevated oil prices.
Notable Movers
Semiconductor stocks were the session’s biggest casualties. Intel (INTC) tumbled roughly 7% on company-specific concerns, while Micron Technology (MU) sank about 6.6% and Advanced Micro Devices (AMD) fell 5.7%. Marvell Technology (MRVL) and Arm Holdings (ARM) each dropped around 5% and 4%, respectively, as analysts warned that stretched valuations across the AI chip trade left the group vulnerable to exactly this kind of pullback. Even Nvidia (NVDA), which reports earnings next Wednesday, slipped about 2% ahead of that closely watched release.
On the brighter side, Cisco Systems (CSCO) held onto most of its massive gains from Thursday, when the stock jumped 13.4% after the company reported blowout fiscal third-quarter results and raised its full-year guidance. Cisco highlighted $5.3 billion in AI infrastructure orders year to date and boosted its fiscal-year order target to $9 billion. Energy names also bucked the broader decline, benefiting from the spike in crude prices.
Looking Ahead
Investors head into next week navigating a changed landscape at the Fed. Any early commentary from Chair Warsh will be parsed for clues on policy direction, particularly with the 10-year yield at levels that could start to bite. Nvidia’s earnings on Wednesday will be the week’s marquee event, serving as a referendum on whether the AI spending boom remains on track or is beginning to cool. With oil prices elevated and bond yields climbing, the market’s ability to sustain its year-to-date rally faces a meaningful test in the sessions ahead.