US stocks today: US stocks slip as Treasury yields rise, investors weigh Fed outlook

US stocks fell on Friday as rising Treasury yields, volatile oil prices and uncertainty over the Federal Reserve's rate path weighed on sentiment, capping a turbulent week for investors, Reuters reported.

The Dow Jones Industrial Average fell 195.80 points, or 0.38%, to 51,590.98, while the S&P 500 lost 17.02 points, or 0.22%, to 7,620.74. The Nasdaq Composite slipped 43.55 points, or 0.16%, to 26,374.75.

The benchmark 10-year Treasury yield rose 4.9 basis points to 4.996%, adding to pressure on equities as investors continued to digest the Federal Reserve's recent rate hike and Chair Kevin Warsh's comments on the future path of borrowing costs.


"Today will be largely about digesting the effects and really thinking through the pros and cons of the Fed's recent moves," said Steve Sosnick, chief strategist at Interactive Brokers.

Oil volatility adds to market pressure

Oil prices swung sharply as investors assessed supply risks following fresh strikes involving Saudi Arabia and Yemen's Iran-backed Houthis. The shifting outlook for crude added another source of uncertainty for markets already grappling with higher borrowing costs.

Ten of the 11 major S&P 500 sector indexes declined, with materials leading the losses with a 1.4% fall.

Friday also marked the quarterly expiration of derivatives contracts linked to stocks, index options and futures, a phenomenon known as "triple witching". The event threatened to amplify volatility during an already unsettled trading session.

Investors were also reassessing expectations for artificial intelligence demand after executives at major technology companies called for a slowdown in AI development this week. The implications of any such slowdown remain unclear, while the race for AI leadership is expected to feature prominently at next week's meeting between US President Donald Trump and Chinese President Xi Jinping in Washington.

Corporate signals keep investors cautious

With the next earnings season still about a month away, comments from senior executives at several industry conferences this week offered investors an early glimpse into corporate conditions and helped shape market sentiment.

Goldman Sachs chief US equity strategist Ben Snider said strong S&P 500 earnings growth had raised concerns that the market was in an "earnings bubble".

"While there are indeed factors contributing to 'over-earning' today, our base case is for S&P 500 earnings growth to decelerate, not collapse, in coming years," Snider wrote.

Among individual stocks, Xenon Pharmaceuticals plunged more than 27% after the company temporarily paused enrolment in trials of its experimental drug for major and bipolar depression following reports of side effects.

Berkshire Hathaway fell 0.4% after announcing that Warren Buffett would step down as chairman and become chairman emeritus, effective immediately.

Declining stocks outnumbered advancing issues by 2.51-to-1 on the NYSE and 1.56-to-1 on the Nasdaq. The S&P 500 recorded four new 52-week highs and 18 new lows, while the Nasdaq posted 18 new highs and 56 new lows.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times)