Overview
- Major U.S. indexes closed lower Friday, with the Dow down 1.07% (537 points), the S&P 500 off 1.24%, and the Nasdaq down 1.54% after a two-day Trump–Xi summit ended without progress on Iran.
- U.S. crude rose past $105 a barrel as uncertainty over reopening the Strait of Hormuz fed worries about a lasting supply shock and higher fuel costs that lift headline inflation.
- Long-term Treasury yields climbed, with the 10-year near 4.60% and the 30-year around 5.12%, a level not seen since 2007, which raises borrowing costs and pressures high-growth tech shares.
- Rate expectations flipped, with CME FedWatch showing investors largely dropping hopes for cuts this year and assigning odds to a December hike, while Kevin Warsh’s confirmation as Fed chair sharpened focus on the policy path.
- Technology and chip stocks led the U.S. slide, while Mexico’s IPC fell for a second day as miners like Peñoles and Grupo México sank after sharp drops in gold and silver prices.