Stock Market Update

[BRIEFING.COM] Stocks ended a record-setting week on a lower note, with the S&P 500 (-1.2%), Nasdaq Composite (-1.5%), and DJIA (-1.1%) retreating from recent record highs amid a surge in oil prices and Treasury yields.

Crude oil futures settled today's session $4.33 higher (+4.3%) at $105.49 per barrel amid fears that the U.S. could re-engage in military operations against Iran after the summit between President Trump and President Xi failed to produce any meaningful policy changes.

The lack of surprises from the summit also included no mention of NVIDIA (NVDA 225.32, -10.42, -4.42%) H200 chip sales to China, while China's pledge to purchase 200 Boeing (BA 220.49, -8.72, -3.80%) jets was largely in line with expectations.

More important than any individual stock move, though, was the upward pressure on Treasuries that sent yields to fresh highs for the year amid renewed inflation concerns tied to the rise in oil prices. The 2-year note yield settled up nine basis points to 4.08%, while the 10-year note yield settled up 13 basis points to 4.60%.

Higher interest rates reduce the present value of future cash flows, and the market has clearly been placing a significant premium on the long-term earnings potential tied to the AI buildout.

The PHLX Semiconductor Index finished 4.0% lower today, ending the week with a loss after several choppy sessions. Corning (GLW 191.92, -16.36, -7.85%) and Micron (MU 724.66, -51.35, -6.62%) were among the worst-performing components of the information technology sector (-1.6%).

However, the sector was supported somewhat by relative strength in software stocks, with the iShares GS Software ETF finishing 1.3% higher. Microsoft (MSFT 421.92, +12.49, +3.05%) was a "Magnificent Seven" standout after CNBC reported that Pershing Square has built a position in the company.

Meanwhile, Tesla (TSLA 422.04, -21.26, -4.79%) was a notable laggard, which pressured the consumer discretionary sector (-1.8%).

The sector also faced weakness across its homebuilder components due to rising interest rates, which weighed on building products names in the industrials sector (-1.8%) as well.

The rate-sensitive utilities (-2.4%) and real estate (-1.6%) sectors also underperformed, while the materials sector (-2.7%) finished with the widest loss amid broad weakness in metals and mining names.

Only the energy sector (+2.3%) managed to finish higher amid the surge in oil prices today.

Outside of the S&P 500, the Russell 2000 (-2.4%) and S&P Mid Cap 400 (-1.7%) underperformed amid the broad risk-off tone and renewed pressure on economically-sensitive and rate-sensitive stocks.

Overall, today's session was a reminder that the macro backdrop remains a meaningful headwind for equities even after a strong AI-fueled earnings season helped drive the market to repeated record highs in recent weeks. The market entered the year expecting roughly two Fed rate cuts in 2026, but persistent inflation pressures and the recent surge in oil prices have now shifted expectations toward the possibility of a rate hike next January. The question now is whether investors will once again step in to buy today's weakness across tech and semiconductor stocks, or if rising yields and inflation concerns begin to weigh more meaningfully on the market's momentum.

• Nasdaq Composite: +12.8% YTD
• Russell 2000: +12.6% YTD 
• S&P Mid Cap 400: +9.2% YTD
• S&P 500: +8.2% YTD
• DJIA: +3.0% YTD

Reviewing today's data:

• May Empire State Manufacturing 19.6 (Briefing.com consensus 6.2); Prior 11.0
• April Industrial Production 0.7% (Briefing.com consensus 0.2%); Prior was revised to -0.3% from -0.5%, April Capacity Utilization 76.1% (Briefing.com consensus 75.7%); Prior 75.7%
  
  • The key takeaway from the report is that it was underpinned by solid manufacturing output that was led by the production of durables. Excluding motor vehicles and parts, manufacturing output was up 0.3% month-over-month.

[BRIEFING.COM] The major averages remain firmly lower as the market enters the final half hour of the session.

Looking ahead, Baidu (BIDU 135.64, -7.65, -5.34%) trades lower ahead of its earnings release Monday morning as investors position cautiously around continued weakness in Baidu Core's online marketing business, which has struggled amid ongoing pressure in the core advertising market.

Looking even further ahead, Reuters reports that SpaceX is targeting June 11 for its IPO, and will be under the Nasdaq.

[BRIEFING.COM] It has been a slow trudge through negative territory for stocks this afternoon, with the S&P 500 (-0.9%), Nasdaq Composite (-1.0%), and DJIA (-0.9%) little changed from their midday levels.

Crude oil futures settled today's session $4.33 higher (+4.3%) at $105.49 per barrel, which keeps the energy sector (+1.9%) firmly higher, while the other ten S&P 500 sectors trade lower.

Headlines are relatively muted this afternoon, and the major averages are currently mixed on a week-to-date basis.

[BRIEFING.COM] The S&P 500 (-0.81%) down about 61 points this afternoon, hosting the shallowest declines among the major averages on an overall down session.

Briefly, S&P 500 constituents Charter Comm (CHTR 138.49, -9.51, -6.43%), Corning (GLW 195.88, -12.40, -5.95%), and Albemarle (ALB 181.22, -9.88, -5.17%) dot the bottom of the average. CHTR continues recent weakness, now down more than -42% over the last three weeks.

Meanwhile, ServiceNow (NOW 95.90, +5.40, +5.97%) is near the top of the standings owing in part to news that the company partnered with Experian (EXPGY 34.67, +0.41, +1.21%) to scale agentic AI.

[BRIEFING.COM] The tech-heavy Nasdaq Composite (-0.83%) is in last place on Friday afternoon, down 220 points.

Gold futures settled $21.40 lower (-0.5%) at $4,685.30/oz, down about -3.6% on the week, pressured by a stronger U.S. dollar and rising Treasury yields after hotter inflation data reinforced expectations that the Federal Reserve could keep interest rates higher for longer. The decline also reflected reduced safe-haven demand as investors trimmed defensive positions following the Trump/Xi summit and shifted focus back toward inflation and rate concerns.

Meanwhile, the U.S. Dollar Index is up about +0.4% to $99.24.