S&P 500 and Nasdaq post weekly losses as surging Treasury yields and oil prices revive inflation concerns, pressuring equities.
US equities retreated this week as rising bond yields and oil prices reignited inflation worries, dragging major indices lower. The S&P 500 fell 1.43%, while the Nasdaq Composite dropped 2.05%, snapping three-week winning streaks. The Dow Jones Industrial Average declined 0.85%.
Long-term Treasury yields surged to levels unseen in nearly two decades, fueled by geopolitical tensions and higher oil prices. The Treasury Department’s announcement of a doubled buyback program for longer-dated debt briefly eased yields, but the relief was short-lived as yields climbed again later in the week.
The AI sector also faced volatility amid regulatory uncertainty, including Pennsylvania’s executive order imposing stricter data center standards. Infrastructure stocks were hit as investors weighed the potential impact of political backlash on AI development.