Dow Jones Futures Fall 0.7% as Yields Top 4.5%

Dow Jones futures fell 0.7% on Friday as benchmark 10-year Treasury yields climbed above 4.5%. The move hit equities before the opening bell and left bond investors facing a week that ended with US Treasury yields at their highest level in around a year. Trump’s Beijing trip added another layer, with the summit ending as traders digested the signal from Washington and Beijing.

Trump Ends Beijing Visit

Trump concluded his visit with Xi in Beijing on Friday before flying back to Washington, closing a trip that had carried a business-friendly tone. Sixteen top US executives accompanied him, and new deals were announced for Boeing and Nvidia. That kept the focus on whether the summit would ease cross-border business friction even as Taiwan and Iran remained in the background.

1.6% was the drop in Nasdaq 100 futures, the weakest of the major US index futures. S&P 500 futures fell 1.1%, while Dow Jones Industrial Average futures moved 0.7% lower. Those declines followed Thursday’s all-time closing highs in US stocks, a sharp reversal for traders who had started the session with momentum on their side.

Yields Cross 4.5%

4.5% was the line Treasury yields pushed through as the benchmark 10-year moved ever higher. The rise capped a bruising week for the global bond market and came as crude stayed elevated, with Brent near $107 a barrel and West Texas Intermediate near $102. That combination kept inflation pressure in view while equities and bonds moved in opposite directions.

2.3% was the drop in MSCI’s broadest index of Asia-Pacific shares outside Japan, while Japan’s Nikkei lost 1.8%, China’s blue-chip index eased 0.6%, and Hong Kong’s Hang Seng fell 1.4%. South Korea’s KOSPI declined by over 5%, signaling that the selloff was not confined to US futures. Figma jumped after a late Thursday earnings report pointed to strong demand amid the AI boom, but that was not enough to offset the broader pullback.

Brent Near $107

16 top US executives accompanied Trump on the trip, but the market still had to price the unresolved mix of trade, geopolitics and higher rates. Trump said during the summit that he and Xi “feel very similar about Iran,” even as a US naval blockade of Iran’s ports remained in place. If yields stay above 4.5%, the pressure on stock valuations is likely to stay in focus for the next trading session.