Stock Market Dives, Yields Soar As Trump Says This On Taiwan; Microsoft Pops On Ackman Move

Stocks finished sharply lower as Treasury yields spiked and oil rallied, hitting smaller-cap shares hardest and knocking major averages off recent gains. The Nasdaq composite fell about 1.5%, snapping a multi-week advance, while small caps suffered their worst day of 2026 amid the surge in yields and crude. Broad market momentum cooled heading into a busy earnings stretch that includes Nvidia, while Bill Ackman’s move gave Microsoft a lift. Overall, the move elevated risk-off sentiment and pressured cyclical and growth-oriented names, leaving major indexes roughly flat for the week despite Friday’s selling.