U.S. Treasury Yields Rise Amid Market Turbulence

New York, NY — U.S. Treasury yields increased on Friday as investors braced for consumer sentiment data while digesting earlier inflation reports. The benchmark 10-year Treasury yield rose more than 4 basis points to 4.318%, reflecting investor concerns about economic trends and government policies.

The yields moved inversely to prices, and as the market gained traction, the 2-year note added less than 3 basis points to 3.979%. A key survey from the University of Michigan reported that consumer sentiment fell to 57.9 in March, a drop that surprised many economists.

This decline follows a producer price index report revealing flat growth for February after a previous jump of 0.6% in January. On Wednesday, the consumer price index data reported a 0.2% increase on a monthly basis and a 2.8% rise annually, easing investor fears regarding inflation linked to President Trump‘s tariffs.

During an Oval Office meeting, President Trump reiterated his commitment to current tariffs, stating, “I’m not going to bend at all. We’ve been ripped off for years, and we’re not going to be ripped off anymore.” Investors are now watching the upcoming Federal Reserve policy meeting for cues on the future of interest rates, with traders betting that rates will hold steady, according to CME’s FedWatch tool.

In stocks, the S&P 500 opened sharply higher on Friday, rebounding from a significant correction earlier in the week. The index dropped into correction territory for the first time since 2023, leading to investor concerns about tariffs and the broader economic outlook.

As trading began, all major indexes were gaining ground, with the Nasdaq composite rising by 1.8% and the S&P 500 and Dow up 1.3% and 1%, respectively. The S&P 500 is poised to finish its worst weekly performance in two years after a turbulent start to 2025.

Market participants were also keenly awaiting the morning’s consumer sentiment data, which was expected to reveal a further decline after February’s nearly 10% drop. Shares of major technology firms were notably higher in early trading, with Nvidia leading at a 3.5% gain, followed by Broadcom with a 2.5% increase. Other tech giants, including Apple, Microsoft, Amazon, and Tesla, reported gains as investors eagerly watched their movements.

Additional tech stocks like Palantir Technologies and AppLovin rebounded significantly, up 7% and 5%, respectively. Meanwhile, as the digital currency market saw a resurgence, shares of Strategy, a significant holder of Bitcoin, increased by 5.5% alongside Coinbase and Robinhood’s rises of 3% and 4%, respectively.

Gold futures experienced a slight increase of 0.2% to $3,000 an ounce, close to peak levels. Concurrently, West Texas Intermediate crude oil prices rose by 0.2% to $66.70 per barrel.

The yield on the 10-year Treasury note rose to 4.31%, reflecting cautious optimism among investors despite economic uncertainties continuing to shape market sentiments.

As the S&P 500 approached the end of the week, it faced the possibility of marking its fourth consecutive weekly loss. The technology-heavy Nasdaq Composite recorded an even steeper decline of 4.9% for the week, the most considerable drop since September.

Indicators suggest that the lingering effects of prior market behaviors are contributing to bearish trends, as the S&P 500 recently slipped beneath crucial support levels, prompting a period of correction. In their analyses, investors and financial experts alike have highlighted the need to monitor support levels around 5,400 and 5,265, with potential resistance areas noted near 5,770 and 6,010.