Dow Jones Today: Stock Market Wavers as AI Rally Slows and Treasury Yields Hit 4‑Month High

U.S. stocks swung between small gains and losses Friday as the chip stock rally cooled and uncertainty over the Federal Reserve’s next steps pushed Treasury yields to a four‑month high. The Nasdaq, S&P 500, and Dow Jones each rose less than 0.1%, breaking a two‑day losing streak after strong results from Taiwan Semiconductor Manufacturing Co. (TSM) and news of a U.S. Taiwan trade deal.

Micron (MU) surged after an insider purchased nearly $8 million in shares, boosting tech investor confidence. In contrast, Constellation Energy (CEG) and Vistra (VST) fell on reports that the Trump administration plans to overhaul America’s largest electricity grid.

Treasury yields climbed after President Trump suggested he may not appoint Kevin Hassett to replace Jerome Powell as Fed Chair in May. The 10‑year Treasury yield hit 4.23%, its highest since September, reflecting volatility tied to Fed independence concerns and mixed inflation data.

Regional banks capped off the first week of Q4 earnings season. PNC Financial (PNC) gained on stronger‑than‑expected results driven by dealmaking and advisory fees, while Regions Financial (RF) slipped after disappointing guidance.

Commodities were mixed: oil rose 1% to $59.80, gold fell 0.7% to $4,590 after hitting record highs earlier in the week, and silver dropped sharply. Bitcoin hovered near $95,000, while the U.S. dollar index ticked up 0.1% to 99.4.

The Clarity Act, a nearly 300‑page bill designed to establish a regulatory framework for crypto, has stalled in Washington, denting market momentum. The legislation was set for a Senate Banking Committee markup hearing this week but was postponed after Coinbase (COIN) CEO Brian Armstrong withdrew support, citing language that could put one of the company’s products at risk.

Lawmakers are also debating an ethics provision that would restrict senior government officials, including President Trump, from profiting from crypto. The delay has cooled early‑2026 optimism, with Bitcoin, Ethereum, and Solana giving back gains from earlier in the week. Shares of Coinbase, Circle (CRCL), and Bullish (BLSH) fell on the news but showed signs of recovery by Friday.

AI‑linked power stocks moved sharply Friday after reports that President Trump plans to push PJM Interconnection, which manages electricity for 13 states and Washington, D.C., to hold an emergency auction. Tech giants would bid on 15‑year electricity generation contracts, with proceeds funding an estimated $15 billion in new power plants, according to the White House.

Shares of GE Vernova (GEV) rose 6% on expectations the buildout would boost its gas turbine business. In contrast, Constellation Energy (CEG) and Vistra (VST) fell 11% and 7%, respectively, as their existing data‑center power deals could be disrupted.

Electricity bills have surged in regions like Virginia, where dense clusters of AI data centers strain the grid. Rising household costs tied to AI’s energy demand are becoming a major issue ahead of the midterm elections.

Tech investors appeared unfazed: Microsoft (MSFT) and Meta (META) gained about 1%, Amazon (AMZN) edged higher, while Alphabet (GOOG) slipped slightly.

Shares of AST SpaceMobile (ASTS) surged more than 15% Friday after being named an eligible contractor under the U.S. Missile Defense Agency’s SHIELD program, part of the Trump administration’s “Golden Dome” initiative.

The award doesn’t guarantee contracts but allows AST SpaceMobile developer of a space‑based cellular network powered by low‑Earth orbit satellites to compete for projects worth up to $151 billion. Year‑to‑date, ASTS stock is now up about 60%.

The SHIELD contract expands the pool of eligible bidders to 2,440 companies. AST’s Chief Commercial Officer Chris Ivory said the designation enables the company to align its satellite technology with U.S. defense needs.

Space remains a hot Wall Street theme: Elon Musk’s SpaceX is reportedly weighing a public offering at a potential $1.5 trillion valuation, which would mark the largest IPO since Saudi Aramco in 2019. Analysts even suggest AI data centers could eventually move into orbit, linking space exploration with the AI boom.

Shares of Micron (MU) surged more than 5% Friday after board member Mark Liu, former co‑CEO of Taiwan Semiconductor Manufacturing Co. (TSM), purchased 23,200 shares worth about $7.8 million. The insider buy is seen as a bullish signal for tech investors, reinforcing confidence in Micron’s growth trajectory.

Micron stock has already tripled in value over the past year, driven by soaring demand for memory and data storage devices powering the AI data center buildout. Shares are up about 40% year‑to‑date, keeping momentum strong into 2026.

Other memory chipmakers are also benefiting from the shortage:

• Sandisk (SNDK): up more than 1,000% since its spin‑off from Western Digital last year.
• Western Digital (WDC): up about 350% in the past 12 months.
• Seagate Technology (STX): up about 240% over the same period.

On Friday, Seagate gained 2%, while Western Digital and Sandisk slipped about 1% after early gains.

• Powell under investigation: The Trump administration’s Justice Department subpoenaed the Fed last week regarding Powell’s 2020 Senate testimony tied to the renovation of the Fed’s headquarters. Powell denied wrongdoing, framing the probe as part of Trump’s broader campaign to pressure the Fed into sharp rate cuts.
• Officials rally behind Powell: At least four Fed policymakers publicly defended Powell, stressing that monetary policy must serve the public interest, not the White House. This is unusual, as Fed officials typically avoid commenting on political controversies.
• Impact on rate‑cut odds: Traders adjusted expectations, pricing in lower chances of early‑year rate cuts. The pushback signals that Fed officials may hold rates higher for longer to reinforce independence and credibility.
• Independence as a priority: Governors and regional bank presidents emphasized that protecting the Fed’s autonomy is essential to its mission of keeping inflation under control.

The Federal Reserve’s independence is now front and center. Trump’s investigation into Powell has backfired, prompting Fed officials to rally behind the Chair and signal resistance to political pressure. Traders have already adjusted expectations, with rate‑cut odds dropping for early 2026. The message is clear: unless economic conditions justify easing, the Fed is likely to keep borrowing costs higher for longer to defend its credibility and control inflation.