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Stocks slide as 10-year Treasury yield jumps to 4.73%
The move pushed the 10-year yield to its highest level since January 2025, and major indexes gave back earlier gains during Friday trading.
U.S. stocks reversed course on Friday morning after the 10-year Treasury yield surged to 4.73%, the highest level since January 2025, as investors rotated out of the bond market and continued to reassess the Federal Reserve’s decision to hold rates steady without additional forward guidance. The Nasdaq Composite fell 0.4%, the Dow Jones Industrial Average dropped 0.3%, and the S&P 500 declined by 0.4%.
Big Tech earnings also contributed to the reversal. After Microsoft’s historic 15% rally, Amazon shares swung following their earnings beat and Apple shares moved lower after its Services and China revenue came up short, with Amazon up 13% and Apple down 9% in the session.
Yahoo Finance also said the latest “Magnificent Seven” results underscored continued artificial intelligence investment. The four hyperscalers, Amazon, Microsoft, Meta, and Alphabet, forecast cumulative 2026 capital spending of $720 billion to $745 billion, aiming to reassure investors concerned about a potential AI slowdown and higher rates.
Energy stocks and commodities were another drag on sentiment as oil prices stayed elevated amid the ongoing US-Iran conflict and the energy shock. ExxonMobil and Chevron reported Q2 results shaped by windfalls and higher maintenance costs, while WTI crude futures were around $84 per barrel and Brent futures near $88 per barrel, as traffic in the Strait of Hormuz began to falter.
The higher energy and gas prices weighed on consumers’ budgets, and Yahoo Finance pointed to depressed sentiment in a University of Michigan survey that was partially cited as “the latest check” on how Americans are feeling.
Latest closeWTI crude $84.21 ▼0.3%|Brent $89.45 ▼1.4%|S&P 500 7,437.63 ▲1.7%