On Friday the stock market went down. Treasury yields went up, oil prices moved higher, gold and other precious metals fell, and the U.S. dollar got stronger against other currencies. The move felt like a delayed reaction to the inflation numbers released earlier in the week.
The main trigger was a big sell‑off in global bonds. When bond prices drop, their yields rise, and that puts pressure on stocks. AI‑related shares, which had been climbing fast, dropped sharply as traders took profits.
The Bonds section on the Market Summary page shows the Treasury yields at the end of Friday. These levels are among the highest we have seen in the past year.
The Yield Comparison chart, part of the Bonds ChartList in the Market Summary ChartPack, gives a wider view of where bond yields sit compared with the Fed Funds rate.
Because Treasury yields are now above the Fed Funds rate, the market is likely expecting more interest‑rate hikes. That does not make stock trading any safer.
Did Friday’s moves change the market’s overall shape? Not much. The major indexes are still above their 21‑day exponential moving averages, which means the short‑term uptrend is still alive. On the Market Summary page, if you sort the +/- SMA(200) column in the Equities panel, the Nasdaq 100 tops the list while Dow Utilities sit at the bottom.
The breadth data for the Nasdaq 100 is a little bullish. There are more new highs than new lows, more stocks are trading above key moving averages, and the Bullish Percent Index stays near neutral.
Looking ahead to the weekend, the S&P 500, Nasdaq Composite and Dow Industrials remain in bullish territory. Next week’s big story will be NVIDIA’s earnings report, which could lift AI‑related stocks again.
The bigger question is what will happen to bond yields. Will they fall back, or keep climbing? Their direction could decide the market’s next move. Keep an eye on the bond charts, overall market structure, and breadth indicators.
One More Thing …
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When: Saturday, May 16, 10:00 AM ET
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