FX.co ★ US Stocks Pare Gains

US stocks turned lower on Friday as Treasury yields rebounded, reigniting worries about a weakening macroeconomic backdrop. The S&P 500 and Dow each fell 0.3%, while the Nasdaq 100 dipped slightly into negative territory. The yield on the 10-year Treasury note climbed back above 5% as ongoing uncertainty over Middle Eastern oil supplies pushed fuel and natural gas prices higher. The sustained risk of energy-driven inflation has already filtered through to core consumer prices, prompting the Federal Reserve to raise rates this week, with most FOMC members signaling support for at least one more hike. Credit-sensitive sectors declined, with banks and asset managers firmly in the red. Major AI hyperscalers were also mostly weaker amid a wave of debt issuance to fund capital expenditures, with Oracle, Microsoft, and Palantir losing between 1% and 3%. Chipmakers, however, rebounded, recouping some losses after prior fears over AI-related security risks had led markets to reassess the pace of investment in data centers and semiconductors.