U.S. stocks traded lower on Friday as rising Treasury yields interrupted Wall Street’s post-Fed rally. The Dow Jones Industrial Average fell about 0.5%. Meanwhile, the S&P 500 slipped roughly 0.3% and the Nasdaq Composite fell 0.2% as investors reassessed the path of interest rates after the Federal Reserve’s first rate hike in three years.
The pullback came despite another decline in oil prices, which offered some relief from the inflation concerns that have dominated markets in recent weeks. Instead, attention shifted back to bonds, with the 10-year Treasury yield climbing toward 5% as traders weighed the possibility of another Fed hike as soon as October.
Market Movers:
- Securitize (SECZ) +8%: Shares jumped as crypto-linked stocks rallied following the SEC’s approval of digital versions of securities for trading in the U.S., fueling optimism around the expansion of tokenized assets. The move lifted the broader crypto sector as Bitcoin surged above $80,000, with Strategy, Coinbase, Circle, MARA Holdings and Galaxy Digital also posting strong gains.
- MACOM Technology Solutions (MTSI) +4%: Shares gained after BMO Capital Markets upgraded the semiconductor company to Outperform from Market Perform and set a $335 price target. The firm pointed to a more attractive valuation following the stock’s steep decline from its May peak while highlighting continued strength in data-center and industrial and defense demand.
- Intapp (INTA) +3%: Shares rose after the software company announced a partnership with OpenAI that will make its Celeste AI coworker available as a plug-in for ChatGPT Enterprise. The integration is designed to bring proprietary client information and institutional knowledge into AI workflows for highly regulated industries including law, accounting and investment banking.
- Xenon Pharmaceuticals (XENE) -26%: Shares plunged after Xenon paused enrollment in studies of azetukalner for major depressive disorder and bipolar depression following reports of neuropsychiatric adverse events. The company expects the pause to be temporary while it evaluates dosing adjustments, and said its azetukalner programs for focal seizures and primary generalized tonic-clonic seizures are unaffected.
- Netflix (NFLX) -5%: Shares slipped after Wells Fargo downgraded the streaming company to Underweight from Equal Weight and cut its price target to $57 from $80, citing weakening engagement and concerns about its content strategy. The firm said Netflix viewership declined 8% year over year during the first half of 2026 and lowered its operating-margin forecasts for 2027 and 2028.
- Nucor (NUE) -4%: Shares fell after the steelmaker forecast third-quarter earnings of $5.55 to $5.65 per share, below the $5.99 Wall Street consensus. Nucor still expects improved profitability from its steel mills and steel products businesses as higher selling prices and stable volumes offset weaker raw-materials results.
- Steel Dynamics (STLD) -3%: Shares declined after the company projected third-quarter earnings of $5.34 to $5.38 per share, missing the $5.60 consensus estimate. Steel Dynamics expects stronger steel profitability and record shipments, but weaker recycling spreads and volumes are projected to partially offset those gains.
Treasury Yields Put Rates Back in Focus
Bond yields returned as Wall Street’s biggest pressure point Friday. The 10-year Treasury yield rose roughly 5 basis points toward 5% as investors increased bets that the Fed could follow this week’s quarter-point hike with another increase in October.
The move highlights the balancing act facing markets after the Fed’s decision. Investors initially welcomed the central bank’s renewed effort to contain inflation, but expectations for additional tightening could keep borrowing costs elevated and create renewed pressure on stock valuations, particularly in growth-sensitive sectors.
Oil Falls Below $100
Oil prices continued to ease Friday, with crude falling below $100 per barrel after spending much of the past several weeks at elevated levels. The decline provides some relief for markets after disruptions to Middle East supplies pushed energy costs sharply higher and complicated the inflation outlook.
Energy remains a significant wildcard, however. Continued uncertainty surrounding global supply means another spike in crude could quickly revive inflation fears, making the direction of oil an important factor in expectations for the Fed’s next move.
Bitcoin Reclaims $80,000
Crypto emerged as one of Friday’s strongest pockets of the market. Bitcoin surged roughly 5% to above $80,000 as investors returned to riskier assets and looked past the recent setback for federal digital-asset legislation. The rally took off after Bitcoin cleared resistance around $78,000, triggering short liquidations and helping propel the cryptocurrency toward the $80,000-to-$82,000 range. Crypto-linked stocks followed higher, with the sector also benefiting from renewed enthusiasm surrounding tokenized securities.
Looking Ahead
Friday’s pullback suggests the Fed’s rate hike has not eliminated uncertainty around monetary policy. Investors will now be watching incoming inflation and economic data for clues on whether another increase could arrive in October, with the 10-year Treasury yield near 5% once again raising the stakes for equities. Cooling oil prices could provide an important counterweight if the decline continues. For now, Wall Street is entering the next phase of the Fed cycle with inflation concerns easing at the margins, but higher yields ensuring that interest rates remain firmly at the center of the market narrative.