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Stock Futures Decline as Bond Yields Rise, Stalling Weeks-Long Rally

Equity futures fell Friday as climbing bond yields prompted traders to retreat from riskier positions, interrupting an extended rally. The selloff reflected broader concerns about inflation pressures weighing on fixed-income markets and halted weeks of successive record highs in major indexes.

Chip stocks faced particular pressure as retail investors entered positions late in the momentum wave. Analysts offered mixed outlooks on the rally's staying power. HSBC's Max Kettner argued stocks could extend gains despite yield headwinds, citing strong earnings recoveries and low positioning levels as supporting factors.

Geopolitical developments also influenced sentiment. Optimism surrounding a potential resolution to Middle East tensions and the prospect of resumed oil flows through the Strait of Hormuz provided some counterbalance to inflation anxieties.