US stocks slid on Thursday as inflation fears and rising bond yields outweighed hopes for Middle East diplomacy and for the artificial intelligence boom to continue its run.
The Dow Jones Industrial Average fell by 0.2% while the S&P 500 declined by 0.4% and the tech-heavy Nasdaq Composite fell 0.8%. Markets remained subdued amid a sell-off in bonds and concerns about sticky inflation. On Wednesday, the benchmark 10-year yield hit its highest level since 2007 after a S&P economic barometer showed strong business growth, adding to inflation pressures.
President Trump’s meeting with Chinese leader Xi Jinping, meanwhile, remains the key event to watch in markets on Thursday. Treasury Secretary Scott Bessent said the US and China agreed to extend their trade truce for two more months, ending Jan. 10, leaving artificial intelligence competition, the war in Iran, and critical minerals as the primary topics to be discussed. On Thursday, several top US tech CEOs will join the leaders for a dinner.
