Stocks Slide as Oil Shock Sends Bond Yields Higher

Stocks ended sharply lower as surging oil prices and a global bond selloff revived inflation concerns and pushed investors out of recent market leaders. The S&P 500 posted its worst day since March, while chipmakers and AI-linked names saw notable pressure after leading the prior rebound. Treasury yields jumped, the dollar strengthened, crude settled above $105, and gold and crypto weakened, reflecting a broader shift toward caution even as the S&P 500 still managed a seventh straight weekly gain.

Key Headlines & Market Movers:

• Oil and Yields Drive Risk-Off Tone: Persistently high crude prices and the effective closure of the Strait of Hormuz kept markets focused on the risk of a renewed inflation shock. The 10-year Treasury yield rose above 4.6%, while long-dated yields also climbed in Japan and the UK, adding pressure to equity valuations. Investors increasingly priced in the possibility that central banks may need to tighten policy further, even though the inflation impulse is tied to energy disruptions rather than demand alone.
• AI and Chip Stocks Lead the Decline: Semiconductor shares, which had been central to the recent rebound from war-driven lows, fell sharply as investors took profits in crowded AI-linked trades. Arm, Micron, Intel, Nvidia, Tesla, and recently listed Cerebras were among the notable decliners, underscoring concerns about narrow market leadership and extended positioning. Microsoft was a bright spot after Bill Ackman disclosed a new Pershing Square stake, arguing the business is stronger than investors appreciate.

Beijing Summit Delivers Few Clear Breakthroughs: The two-day meeting between President Trump and President Xi produced limited concrete announcements, leaving investors without a clear path toward easing the Hormuz-related energy shock. Trump said AI guardrails and Nvidia’s H200 chips came up, while Boeing appeared to make progress toward a China order, though details remained unclear. China’s position that the strait should reopen quickly helped at the margin, but markets saw little immediate evidence of a resolution.

S&P 500 Sector Performance

Looking Ahead

Markets will stay focused on whether the oil shock keeps feeding into inflation expectations and whether bond yields continue to climb toward levels that could further compress equity valuations. Incoming Fed Chair Kevin Warsh faces an early credibility test as investors assess how the central bank will balance energy-driven inflation pressure against the risk of over-tightening. Earnings momentum and economic resilience still support the broader market backdrop, but the next move in rates and crude will likely determine whether Friday’s pullback remains a healthy consolidation or becomes a deeper reset.

Disclaimer

Duncan Williams Asset Management is an SEC registered investment adviser. SEC registration does not constitute an endorsement of Duncan Williams Asset Management by the SEC nor does it indicate that Duncan Williams Asset Management has attained a particular level of skill or ability.

This material prepared by Duncan Williams Asset Management is for informational purposes only and is accurate as of the date it was prepared.  It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation of any particular security, strategy or investment product. Past performance is not indicative of future results. Investing involves risks, including the risk of loss of principal. Before making any investment decision, investors should consult with their financial advisor, consider their individual financial circumstances, and carefully review all relevant information and risk factors. Duncan Williams Asset Management assumes no responsibility for errors or omissions, nor does it accept liability for any loss arising from reliance on this information.

Advisory services are only offered to clients or prospective clients where Duncan Williams Asset Management and its representatives are properly licensed or exempt from licensure. No advice may be rendered by Duncan Williams Asset Management unless a client service agreement is in place.

This material is not intended to serve as personalized tax, legal and/or investment advice since the availability and effectiveness of any strategy is dependent upon your individual facts and circumstances. Duncan Williams Asset Management is not a legal or accounting firm. Please consult with your legal or tax professional regarding your specific tax situation when determining if any of the mentioned strategies are right for you.

‍