Stocks Lower as Bond Yields Sound Inflation Alarm

The S&P 500 fell 1.24% to 7,408.50, the Nasdaq dropped 1.54% to 26,225.15, and the Dow slid 1.07% to 49,526.17 — the biggest selloff since March as a global bond rout overwhelmed the AI rally. Despite Friday’s decline, the S&P 500 posted its seventh consecutive weekly gain. The 10-year Treasury yield surged above 4.5% to its highest since May 2025, Japan’s 30-year yield hit 4% (first since 1999), and UK 30-year gilts soared above 5.8% (28-year high). The SOX semiconductor index fell 4%, with Nvidia −4.4%, AMD −5.7%, and Intel −6.2%. WTI rose 4% to above $105 and Brent topped $109 as combative comments from Trump and Iran’s Foreign Minister raised doubts the ceasefire would hold. A drone attack sparked a fire at a UAE nuclear plant. Trump posted: “For Iran, the Clock is Ticking — TIME IS OF THE ESSENCE!” Iran’s Mehr news agency said the US offered “no tangible concessions.” The Trump–Xi summit concluded with few tangible results, though China agreed to cut some levies. Powell’s term ended Friday — Warsh is now Fed chair. Fed rate-hike odds for December jumped to nearly 40% from 13.6% a week ago. G7 finance chiefs meet in Paris Monday–Tuesday to discuss the bond selloff and global imbalances. Nvidia reports Wednesday.