US Stocks Fall as Treasury Yields Rise Amid Inflation Concerns

U.S. stocks fell, retreating from record highs as inflation concerns weighed on markets assessing the outcome of the Trump-Xi summit in China.

Concerns over prolonged conflict and higher energy costs intensified inflation fears after this week’s U.S. inflation readings. (Photo: Nielsoncaetanosalmeron, Wikimedia Commons)

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The tech-heavy Nasdaq Composite dropped 1.2%, while the S&P 500 fell 0.9% after both indexes had surged to record closing highs on Thursday, according to a Yahoo Finance report by Amalya Dubrovsky, Rian Howlett, Karen Friar and Grace O’Donnell published.

The Dow Jones Industrial Average lost 0.9%, or more than 450 points, slipping back below 50,000 as investors pulled back from equities.

Stocks weakened after U.S. President Donald Trump concluded his visit to Beijing, where he met Chinese President Xi Jinping before returning to Washington.

The two-day summit struck a business-friendly tone, involving 16 top U.S. executives and reportedly producing new deals benefiting companies such as Boeing and NVIDIA.

However, geopolitical concerns involving Taiwan and Iran remained in focus. U.S. officials hoped China could help end the conflict with Iran by leveraging its relationship with Tehran, a major oil supplier.

Trump said China and the United States “feel very similar about Iran,” while Xi adopted a more measured tone.

Concerns over prolonged conflict and higher energy costs intensified inflation fears after this week’s U.S. inflation readings. Oil futures rose more than 2%, with Brent crude trading near $108 per barrel.

Meanwhile, the benchmark 10-year U.S. Treasury yield climbed above 4.5%, while the 30-year yield topped 5% amid a broader sell-off in global bond markets.