01:42 PM EDT, 05/15/2026 (MT Newswires) -- US equity indexes fell amid a surge in government bond yields and crude oil futures in midday trading on Friday as investors weighed the probability of the Strait of Hormuz reopening in the near term.

The Nasdaq Composite fell 1.1% to 26,340.3, while the S&P 500 was down 0.9% to 7,433.7 and the Dow Jones Industrial Average was lower by 0.8% to 49,646.5.

All sectors except energy fell. Materials, industrials, utilities, and consumer discretionary led the decliners.

A summit between US President Donald Trump and his Chinese counterpart, Xi Jinping, ended with mixed messages, the Wall Street Journal reported. Trump reportedly told Fox News the United States does not need to see the Strait of Hormuz reopen, then told reporters both he and Xi want to see the Iran war end, while also saying Hormuz needs to reopen as soon as possible.

"The market could be pinning too much hope on the US-China talks yielding some positive results on Iran," ING Bank said in a note. "Some hope that China could exert pressure on Iran to reach a deal with the US, to end the war, and lead to a resumption of energy flows through the Strait of Hormuz."

A lack of trust is the biggest obstacle in negotiations to end the war with the US, and Tehran would be open to diplomatic help, particularly from China, to help ease tensions, Iran's foreign minister, Abbas Araghchi, was cited as saying in an Associated Press report. Contradictory messages have "made us reluctant about the real intentions of Americans," he added.

Trump said his patience with Iran was running out and that Chinese President Xi Jinping had agreed that Tehran must reopen Hormuz, but China gave no indication it would weigh in, Reuters reported.

Expectations that Hormuz will quickly return to normal maritime traffic levels in June are based on "magical thinking" and underestimate the political and operational barriers to restoring flows, RBC Capital Markets strategists said in a note.

US Treasury yields surged, with the 10-year up 13 basis points to 4.59%, the highest in about a year. The two-year advanced 9.2 basis points to 4.08%, the strongest level since February 2025.

West Texas Intermediate crude oil futures surged 3.8% to $105.02, and Brent crude futures jumped 3.3% to $109.16.

In precious metals, gold futures dropped 3% to $4,543.4, and silver futures sank 10% to $76.63.

In economic news, industrial production rebounded by 0.7% in April, above expectations for a 0.3% increase in a Bloomberg-compiled survey, and following an upwardly revised 0.3% decline in March.

In company news, DexCom ( DXCM ) said Friday it has set new long-term financial goals, including organic revenue growth of more than 10% a year through 2030. Shares jumped 7.3%, the top gainer on the S&P 500 and the Nasdaq.