tech pullback – Stocks slid on Friday as technology shares reversed course and Treasury yields rose, extending pressure after a Trump–Xi summit failed to deliver major policy breakthroughs.
Traders on the New York Stock Exchange watched the market give back ground after a week that had pushed indexes to fresh heights. On Friday, the S&P 500 lost 1% and the Nasdaq Composite dropped 1.4%, as technology stocks led the retreat and U.S. Treasury yields climbed sharply.
The Dow Jones Industrial Average fell 336 points. or 0.7%. with investors moving carefully after a summit between President Donald Trump and Chinese President Xi Jinping ended without major policy breakthroughs.. For traders. the fear wasn’t just what was said. but what wasn’t—setting up a market that seemed to want clearer momentum before adding risk again.
Tech’s pullback did not look subtle. Intel fell 6%, while Advanced Micro Devices and Micron Technology slid about 5% each. Nvidia dropped 4%. Cerebras Systems, which surged 68% Thursday after beginning trading on the Nasdaq, also cooled, shedding 4% on Friday.
Adam Crisafulli of Vital Knowledge put it plainly: the group had seen “an extremely unsustainable move in recent weeks and remains vulnerable to profit taking regardless of the headlines.” For investors. that helped explain why the market’s biggest gains were meeting fast profit-taking—even as AI enthusiasm remains a major driver.
There was one notable exception in the sector. Microsoft climbed nearly 2% after Bill Ackman said Friday that Pershing Square has built a position in the name.
What also weighed on stocks was the jump in bond yields.. The 30-year Treasury rate topped 5.1% and hit its highest level since 2025, a move that tends to pressure growth-oriented equities.. A wave of reports this week showed inflation “revving back up. ” with oil prices remaining elevated from the Middle East conflict.. Higher rates can hit high-growth stocks hardest, and this session reinforced that risk.
Energy prices rose Friday as well. U.S. West Texas Intermediate futures gained 3% to $104 per barrel, while international Brent futures increased 2% to $108.
Even the diplomacy that had been closely watched added to the unease rather than relieving it.. Investors were disappointed after Trump and Xi’s summit ended without major deals announced.. The two agreed the Strait of Hormuz must remain open, according to a U.S.. readout shared by a White House official—but traders still focused on what felt minor compared with expectations.
Crisafulli noted that “the few headlines that did come out of the summit (like the Boeing orders) were underwhelming. ” and Boeing’s stock reflected that mood.. Shares extended losses, falling another 2% Friday after a nearly 5% drop the previous session.. Investors had been let down by Trump saying China agreed to buy 200 Boeing jets—50 more than what Boeing had previously expected.
The market’s broader backdrop adds to the tension.. Thursday had been a winning day for major indexes: the Dow reclaimed the 50. 000 level. and the S&P 500 closed above 7. 500 for the first time.. Stocks have been on a record-breaking run fueled by renewed fervor around artificial intelligence. but the “under the hood” picture is starting to worry some investors.
Keith Lerner. investment chief at Truist Advisory Services. told CNBC’s “Closing Bell: Overtime” on Thursday that the market’s leadership may be too narrow.. “That broadening trade has really fizzled out. ” Lerner said. adding that while indexes look healthy. the rally appears “top heavy with tech.” He also pointed to “more subdued action in the economy” in other parts of the market—an uneven pattern that can make gains fragile when conditions tighten.
S&P 500 Nasdaq Treasury yields technology stocks Intel Nvidia Microsoft Bill Ackman Pershing Square Boeing Trump Xi summit Strait of Hormuz oil prices WTI Brent