U.S. homebuilders rally as yields tumble

Shares of interest rate-sensitive homebuilders jump on Fri as yields retreat sharply

Benchmark U.S. Treasury 10-year yield US10YT=RR tumbled below 4% to six month lows as China tariffs retaliation stoking recession jitters US/

Declining rates can potentially lead to lower mortgage rates, which could benefit homebuilders

PHLX Housing Index .HGX one of the few bright spots on Fri, up 0.3%

HGX biggest winners include: DR Horton DHI.N 6%, Lennar LEN.N 4%, Pultegroup PHM.N 4%, LGI Homes LGIH.O 4%

In S&P 500 .SPX, building products maker Builders FirstSource BLDR.N up 1%

And home improvement retailers rise: Home Depot HD.N up 0.5% and Lowe's LOW.N up >1%

HGX down 10% YTD. SPX plunging nearly 5% on Fri, extending 2025 loss to >12%