US Stock Futures Slip: Dow Jones Down 0.2%, Nasdaq Falls 0.5% as Oil Prices Rally on Hormuz Disruption
US stock futures slipped Friday morning following a strong rally on Wall Street, as investors digested the outcomes of President Trump’s meeting with Chinese President Xi Jinping. Dow Jones futures (YM=F) edged down 0.2%, while S&P 500 futures (ES=F) fell 0.3% and Nasdaq 100 futures (NQ=F) traded lower by 0.5%.
The pullback comes after the Dow jumped back above 50,000 and the S&P 500 and Nasdaq hit record highs, fueled by optimism in the AI sector. Shares of Applied Materials (AMAT) and Figma (FIG) surged after reporting strong earnings, highlighting robust demand for AI-related technology. The blockbuster debut of Cerebras (CBRS) further boosted market sentiment.
President Trump concluded his Beijing visit, accompanied by 16 top US executives, securing new deals for Boeing (BA) and Nvidia (NVDA). While the visit struck a business-friendly tone, geopolitical concerns over Taiwan and Iran continue to linger.
Meanwhile, oil prices rallied amid heightened tension over potential disruptions in the Strait of Hormuz, adding caution to equity markets. Earnings season wraps up with firms such as Mizuho Financial Group (MFG), RBC Bearings (RBC), and Sigma Lithium Corporation (SGML) releasing results Friday. Investors are balancing optimism from trade deals and AI growth with geopolitical risks and energy market volatility.
Global Bond Yields Jump as Persistent Inflation Sparks Investor Selloff
Global bond yields jumped sharply as persistent inflation triggered a broad investor selloff across government debt markets. The latest April 2026 US CPI report showed annual inflation rising 3.8%, the highest level since May 2023, with a 0.6% monthly increase. Energy costs were the biggest pressure point, rising 17.9% year over year, while gasoline prices surged 28.4% and fuel oil costs jumped 54.3%. These numbers increased fears that inflation may stay above central bank targets for longer.
The bond market reaction was quick and aggressive. The 10-year Treasury yield climbed to 4.46%, close to its March high of 4.48%, and was later quoted near 4.53% after a daily move of 7.3 basis points. Real yields also moved higher, with the 10-year real yield rising near 1.8%. Inflation expectations firmed as the 2-year break-even inflation rate moved near 3%, while the 10-year break-even rate stayed around 2.3%.
The selloff spread beyond the US. Italy’s 10-year yield rose nearly 9 basis points to 3.87%, while Germany’s Bund yield climbed almost 6 basis points to 3.11%. Central banks also added pressure. Markets now see almost zero chance of Federal Reserve rate cuts through 2027, while the European Central Bank kept key rates unchanged on April 30, 2026.
Higher yields are also hitting borrowers. The 30-year refinance rate reached 6.54%, while the standard 30-year mortgage rate touched 6.34%. At the same time, financial stability risks are rising, with high consumer delinquencies, $300 billion in bank portfolio losses, and record stablecoin market value of $320 billion. Overall, the data shows inflation, oil shocks, and tight policy remain the main risks for global markets.
Nvidia Stock Rally Drives S&P 500 and Nasdaq to Record Highs as China Shares Drop Before Trump-Xi Talks
Stock market today showed a strong split between Wall Street and Asian markets as Nvidia Stock helped push major U.S. indexes to fresh record highs. The S&P 500 and Nasdaq Composite surged after Nvidia rallied more than 4%, supported by renewed optimism around AI chip demand and U.S. approval for H200 chip sales to selected Chinese companies. Nvidia Stock (NVDA) also reached a historic market value near $5.7 trillion, making it the key driver behind the latest tech-led rally. Strong earnings, massive data center revenue, and AI infrastructure growth kept investors focused on the company’s long-term demand story.
However, the global picture looked mixed. Chinese and broader Asian shares moved lower ahead of more Trump-Xi talks, as traders watched trade policy, chip export rules, and inflation pressure. MSCI’s Asia-Pacific index fell, while Japan’s Nikkei and South Korea’s KOSPI also declined. The contrast shows that U.S. tech momentum remains powerful, but global markets still face policy and macro risks. For now, Nvidia Stock remains the central force behind record highs in U.S. equities.
For a complete breakdown of Nvidia’s latest rally, China chip approval, and $5.7 trillion valuation, read our full article here.
Nikkei 225 (^N225) Falls as Oil Shock, AI Stock Selloff, and Trump-Xi Summit Risks Weigh on Japan Market
Nikkei 225 (^N225) slipped 1.92% to 61,449.18 as Japanese markets faced pressure from AI stocks, oil prices, and global geopolitical risks. Another market snapshot showed the index down 1.99% near 61,409, showing strong selling pressure across Japan’s tech-heavy sectors. Weakness in names linked to semiconductors, AI hardware, and precision equipment hurt market confidence.
Markets are closely watching the Trump-Xi summit because it may shape recovery signals for Japan and Asia. The biggest focus is the US-Iran conflict, which has lifted crude prices and raised concern about the Strait of Hormuz. Since Japan imports most of its energy, higher oil prices can raise business costs and inflation.
The summit also matters for chip supply chains, rare earth exports, and Taiwan tensions. Any sign of lower trade pressure could support Japanese technology shares. Domestically, the Bank of Japan remains under pressure because high oil prices and a weak yen can lift inflation. Overall, the Nikkei 225 needs lower oil stress, calmer US-China trade signals, and stable tech supply chains to regain momentum.
Read more about the latest Nikkei 225 movements and market insights.
Asian Shares Slide as Inflation Fears Outweigh Xi-Trump Optimism
Asian markets fell sharply Friday as early optimism from the Xi-Trump meeting faded and investors shifted focus toward rising inflation risks. The sell-off came as Treasury yields climbed to one-year highs, increasing concerns that the Federal Reserve may still consider a rate hike this year.
The MSCI Asia-Pacific index outside Japan dropped 2.3% and moved toward a weekly decline of 1.8%, showing broad pressure across regional equities. Japan’s Nikkei 225 (^N225) slipped 1.8% after wholesale inflation rose to 4.9% in April, the fastest pace in three years. That data kept expectations alive for another Bank of Japan rate increase.
South Korea’s KOSPI (^KS11) briefly crossed the 8,000-point level for the first time before reversing sharply and falling more than 5%. China’s blue-chip stocks eased 0.6%, while Hong Kong’s Hang Seng Index (^HSI) declined 1.4%.
Investors are now balancing hopes from US-China trade talks with growing pressure from inflation, bond yields, and tighter monetary policy risks.