Dow loses more than 500 points Friday as tech slumps and yields spike: Live updates

Stocks fell on Friday, bogged down by losses in technology stocks and a rise in U.S. Treasury yields, after a summit between President Donald Trump and Chinese President Xi Jinping ended and left traders worried about no major policy breakthroughs.

The S&P 500 shed 1.24% to end at 7,408.50, while the Nasdaq Composite slipped 1.54% to 26,225.14. The Dow Jones Industrial Average was down 537.29 points, or 1.07%, and closed at 49,526.17.

Investors took profits in tech after the group saw sharp gains recently. Notably, Intel retreated more than 6%, while Advanced Micro Devices and Micron Technology lost 5.7% and 6.6%, respectively. Nvidia dropped 4.4%, while Cerebras Systems — which surged 68% Thursday after it began trading on the Nasdaq — shed 10%.

“The group has witnessed an extremely unsustainable move in recent weeks and remains vulnerable to profit taking regardless of the headlines,” wrote Adam Crisafulli of Vital Knowledge.

Microsoft was an exception, however. The stock was 3% higher after Bill Ackman said Friday that Pershing Square has built a position in the name.

Treasury yields jumped, pressuring stocks, with the 30-year rate topping 5.1%. A series of reports this week showed inflation was revving back up as oil prices remain elevated from the Middle East conflict. Higher rates could hit the high growth stocks the hardest.

Oil prices traded higher Friday. U.S. West Texas Intermediate futures rose 4.2% to settle at $105.42 per barrel, while international Brent futures settled up 3.35% to $109.26. That’s after Trump told Fox News that he is “not going to be much more patient” with Iran, adding that “they should make a deal.”

Investors were disappointed following the conclusion of the summit between Trump and Xi, as no major deals have been announced. The two agreed that the Strait of Hormuz must remain open, according to a U.S. readout that was shared by a White House official. But “the few headlines that did come out of the summit (like the Boeing orders) were underwhelming,” Crisafulli wrote.

Boeing shares extended their losses Friday, moving lower by 3.8% following a nearly 5% drop in the previous session, as investors were let down by Trump saying that China has agreed to buy 200 Boeing jets — just 50 more than the company had previously anticipated.

Thursday marked a winning session for the 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 tear on a renewed fervor around artificial intelligence. While Argent Capital Management’s Jed Ellerbroek believes sentiment among investors “remains very optimistic overall,” a peek under the hood is showing that the broader market is lagging the largest tech companies, a divergence that is increasingly worrying some investors as it suggests a fragile rally.

“It doesn’t feel right to say that tech is just going to lead forever,” the portfolio manager said, noting that the “HALO” trade earlier this year saw tech stocks “shunned” in support of those in sectors such as consumer staples and materials. “One thing kind of popping up and driving the market is inherently more risky than if there were several things.”