Trump Visit Ends as Stock Markets Fall on 10-Year Yield Jump
Stock markets fell on Friday as the 10-year Treasury yield climbed 11 basis points to 4.57% and the 30-year Treasury yield rose 10 basis points to 5.12%. The bond move pushed yields to levels last seen in May 2025 and June 2007, pressuring equity valuations just after the S&P 500 had set a closing high on Thursday.
Wall Street retreats 0.9%
The S&P 500 lost 0.9%, the Nasdaq Composite fell 1.3%, and the Dow Jones Industrial Average dropped 0.6% back below 50,000. Friday’s pullback followed Thursday’s record close in the S&P 500, showing how quickly rate pressure can reverse a session of gains when borrowing costs reset higher.
Trump concluded his visit with Chinese counterpart Xi Jinping in Beijing before flying back to Washington after a two-day summit that struck a business-friendly tone. The meeting included 16 top US executives and produced new deals for Boeing and Nvidia, but the broader market had already shifted to inflation jitters and a bond rout that was lifting long yields around the world.
Trump, Xi, and Iran pressure
Trump said China and the US “feel very similar about Iran,” after US officials had hoped China could help end the war with Iran by using its influence with its major oil supplier. Brent crude was trading around $108 a barrel, keeping energy prices in view as investors weighed whether conflict-related price pressure could feed back into rates and equity pricing.
Figma shares jumped after its late Thursday earnings report, giving one software name a sharp bid even as the wider market weakened. Mizuho Financial, RBC Bearings, and Sigma Lithium were scheduled to post results on Friday, leaving traders with another round of earnings that could either reinforce or offset the market’s rate-driven decline.
June 2007 long bond level
The 30-year Treasury yield reaching 5.12% put the long bond at its highest level since June 2007, a line that has tightened financial conditions in the past. If yields hold near these levels, the pressure lands first on rate-sensitive stocks and on any company that depends on cheaper financing to justify richer valuations.
Jeff Currie called the old model of frictionless global trade the “2000s super cycle” in a Friday thread posted to X, describing a world where “China assembling, Russia piping, dollars recycling, everything moving across borders frictionlessly,”. Friday’s market action pointed in the opposite direction: higher yields, more expensive capital, and a Wall Street that no longer had Thursday’s closing highs to lean on.
