Wall Street Corrects, Yields Rise, and Trump–Xi Summit Lacks Breakthroughs
US stocks closed lower on Friday (May 15), dragged down by a decline in technology stocks and a surge in US government bond yields after the meeting between President Donald Trump and Chinese President Xi Jinping ended without major policy announcements. The S&P 500 fell 1.24% to 7,408.50, the Nasdaq Composite fell 1.54% to 26,225.14, while the Dow Jones Industrial Average fell 537.29 points, or 1.07%.
Profit-taking was most visible in the technology sector after a sharp recent rally. Intel fell 6%, AMD fell 5.7%, Micron fell 6.6%, and Nvidia fell 4.4%. Cerebras Systems, which surged 68% the day before on its Nasdaq debut, fell 10%. The exception was Microsoft, which rose 4% after Bill Ackman mentioned that Pershing Square was building a position in the stock.
Additional pressure came from the bond market. Yields surged, with the 30-year tenor breaking through 5.1% and reaching its highest level since 2025. Several data releases this week reinforced the perception of inflation strengthening, while oil prices remained high due to the Middle East conflict. Rising yields and expectations of tighter interest rates tended to weigh most heavily on growth-oriented stocks, which are sensitive to the cost of capital.
On the geopolitical front, investors viewed the Trump-Xi summit's outcome as lacking any new catalysts. Both sides agreed that the Strait of Hormuz should remain open, according to the US summary, but other headlines were deemed insufficient to shift sentiment. Boeing fell about 3%, extending its decline after the market judged Trump's statement that China had agreed to buy 200 Boeing jets to fall short of higher expectations.
Friday's correction also followed a strong Thursday session, when the Dow re-surfaced above 50,000 and the S&P 500 closed above 7,500 for the first time. The market now awaits the next direction in yields, developments in oil prices and the Middle East conflict, and whether there will be any concrete follow-up action following the US-China meeting that could reduce policy uncertainty. (arl)*
Source: Newsmaker.id
