S&P 500 Slips as Rising Yields Dull Stock Appetite

The S&P 500 (SPX) is trading lower amid rising yields and the conclusion of the Trump-Xi summit.

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The 10-year Treasury yield climbed to 4.57% on Friday, marking the highest level since June 2025. That isn’t good news for equities, as higher yields make bonds more appealing and can attract capital away from the stock market. Yields have jumped in recent days following several concerning inflation data points, including the Producer Price Index (PPI) and the Consumer Price Index (CPI).

Trump-Xi Summit Ends Without Major Deals

Meanwhile, the Trump-Xi summit came to a conclusion, with both leaders touting a healthy relationship between the two sides. However, neither side announced any major breakthroughs on tech agreements or progress toward resolving the war in Iran. China said it would purchase 200 Boeing (BA) jets, although that was well below the 500 that analysts had expected.

Furthermore, Trump said Beijing will not purchase Nvidia’s (NVDA) H200 chips, despite the U.S. approving shipments of them to China earlier this week.