Major US stock indices declined on Friday as a sharp rise in Treasury yields dampened investor appetite for equities, driven by concerns that persistent tensions in the Middle East could fuel inflation. The yield on the benchmark 10-year US Treasury note jumped to 4.595%, its highest level since February 2025, marking its largest single-day gain in over a year. The 30-year Treasury yield climbed to 5.127%, reaching its highest closing level since July 2007.
In stock market action, the Dow Jones Industrial Average fell by 537.35 points, or 1.07%, closing at 49,526.11. The Nasdaq Composite dropped 410.08 points, or 1.54%, to 26,225.14. The S&P 500 declined 92.74 points, or 1.24%, ending at 7,408.50.
Technology stocks broadly declined. Micron Technology (MU.US) led the losses, plunging 6.62%. Intel (INTC.US) fell 6.18%, Nvidia (NVDA.US) dropped 4.42%, and Tesla (TSLA.US) retreated 4.75%. The Nasdaq Golden Dragon China Index closed down 2.8%, with Alibaba (BABA.US) falling over 6%.
European markets also closed lower. Germany's DAX 30 index fell 497.63 points, or 2.04%, to 23,954.99. The UK's FTSE 100 dropped 185.27 points, or 1.79%, to 10,187.66. France's CAC 40 declined 129.72 points, or 1.60%, to 7,952.55. The Europe Stoxx 50 index fell 97.80 points, or 1.65%, to 5,828.95. Spain's IBEX 35 decreased 190.61 points, or 1.07%, to 17,618.59. Italy's FTSE MIB dropped 911.77 points, or 1.82%, to 49,138.50.
In Asia, Japan's Nikkei 225 fell 1.99%, South Korea's KOSPI declined 6.12%, India's Sensex edged down 0.21%, and Singapore's Straits Times Index dipped 0.14%.
The US Dollar Index rose 0.47% to settle at 99.278. In late New York trading, the euro traded at $1.1630, down from $1.1677. The pound traded at $1.3332, down from $1.3405. The dollar was quoted at 158.68 yen, up from 158.19 yen. It also rose against the Swiss franc to 0.7865, against the Canadian dollar to 1.3739, and against the Swedish krona to 9.4374.
In cryptocurrencies, Bitcoin fell below $80,000 to $79,087.4. Ethereum was quoted at $2,224.
Oil prices advanced. The June contract for West Texas Intermediate crude rose $4.25, or 4.20%, to settle at $105.42 per barrel. The July contract for Brent crude increased $3.54, or 3.35%, to close at $109.26 per barrel.
Precious metals declined. Spot gold fell 2.42% to $4,538.69 per ounce. Spot silver plunged over 9% to $75.938 per ounce, ending a week of extreme volatility that saw its price fall sharply below $80 per ounce. Earlier in the week, silver had surged 11.3%, driven by investor enthusiasm for AI-related stocks and industrial metals used in data centers. Speculation about fuel supplies in Peru, a major producer, also pushed prices higher on Monday. However, prices retreated as more signs emerged that the conflict in Iran is exacerbating inflation, leading investors to demand higher yields from government bonds. Higher borrowing costs are negative for silver, which typically pays no interest. James Steel, chief precious metals analyst at HSBC Holdings, stated, "We still believe silver is fundamentally overvalued, and demand from jewelry and industrial sectors will continue to weaken in the face of high prices."
In corporate news, Starbucks (SBUX.US) announced plans to cut an additional 300 corporate jobs as part of its ongoing cost-reduction efforts. The cuts affect positions across the US, including its Seattle headquarters. The company is also reevaluating roles in its international operations. Starbucks is working to recover from a prolonged sales slump by launching new products, increasing marketing, and improving order accuracy and speed. The company aims to cut $2 billion in costs over two years and has already eliminated over 2,000 corporate roles, including cuts made last month.
Arm Holdings (ARM.US) is reportedly facing a US antitrust investigation by the Federal Trade Commission (FTC) regarding its chip technology licensing practices. The FTC is investigating whether Arm is attempting to illegally monopolize parts of the semiconductor market by potentially refusing to license its technology or degrading the quality of its central processing unit (CPU) licenses. This investigation is part of a global, ongoing scrutiny of Arm's business. Regulators outside the US are also examining the company's conduct, including a lawsuit filed by Qualcomm with the European Commission. Arm is shifting its business model to begin designing its own chips, a move welcomed by some in the industry but which has raised concerns from Qualcomm that Arm may restrict access to its technology.
MicroStrategy (MSTR.US) announced plans to repurchase approximately $1.5 billion principal amount of its 2029 convertible notes. The company indicated that funding for the repurchase may come from proceeds from the sale of Bitcoin. According to an official filing, MicroStrategy stated the repurchase would be funded from existing cash reserves, proceeds from its at-the-market equity offering program, and/or proceeds from Bitcoin sales. The company expects the transaction to be completed around May 19, 2026, after which the related notes will be cancelled. Following the completion of the repurchase, approximately $1.5 billion principal amount of the 2029 convertible notes will remain outstanding.
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