TechFlow News, May 16: U.S. Treasury yields surged sharply on Friday, dampening investor appetite for equities amid growing concerns that the ongoing Middle East standoff could exacerbate inflation. The yield on the U.S. 10-year Treasury note jumped to 4.595%, the highest level since February 2025 and its largest single-day gain in over a year. The yield on the U.S. 30-year Treasury note rose to 5.127%, marking its highest closing level since July 2007. All three major U.S. stock indices posted steep declines. Semiconductor stocks—both in the U.S. and abroad—were among the hardest-hit sectors, following a sharp rally over the past month.
These market moves occurred as oil prices continued to climb, reigniting inflation concerns. Earlier, Trump stated regarding the Strait of Hormuz that the U.S. does not need the waterway kept open—even as energy inventories dwindle. Overseas equity markets also performed poorly, with South Korea’s KOSPI index—previously on a strong upward trajectory—plunging more than 6%. Japan’s Nikkei 225 Index also tumbled significantly; meanwhile, Japan’s 10-year JGB yield closed at its highest level since 1997, following a sharp rise in April’s producer prices. (Jinshi)
