New York, May 18, 2026, 06:03 (EDT)
- Dow futures dropped nearly 300 points, with S&P 500 and Nasdaq 100 futures also lower in early U.S. trading.
- Oil stayed above $100 a barrel following drone attacks in the Gulf, with inflation and Treasury yields still in focus.
- Nvidia reports Wednesday and Walmart follows Thursday, putting the AI trade and U.S. consumer demand in focus.
Stock futures in the U.S. slipped on Monday. Oil prices climbed and bond yields rose again, putting pressure on equities after Friday’s drop from highs. Nvidia and major retailers are in focus for the week, and investors are on edge.
Dow Jones futures dropped 300 points, down 0.6%. S&P 500 futures lost 20.75 points, or 0.28%. Nasdaq 100 futures were off 32.50 points, or 0.11%, based on 10-minute delayed data. Stock futures offer a look at where the indexes might open before the market begins regular trading.
Cash equities were on track for a regular open. NYSE’s main trading runs 9:30 a.m. to 4:00 p.m. ET. Exchange schedules show Memorial Day, May 25, as the next U.S. market holiday, not May 18.
Energy and rates weighed on the market. Brent crude added 57 cents to $109.83 a barrel earlier Monday after reaching $112, the highest level since May 5. U.S. crude moved up to $106.21, according to Reuters. Both contracts jumped more than 7% last week as hopes for a peace deal near the Strait of Hormuz faded.
PVM’s Tamas Varga said “One billion barrels of oil have been trapped behind the strait.” Varga also pointed to “belligerent U.S. and Iranian rhetoric” and attacks on regional producers and ships as key reasons for last week’s WTI rally. Reuters
Oil prices are pushing up rates again. Treasury yields climbed as traders bet that pricier energy would make inflation harder to move. Reuters reported the U.S. 10-year yield got to a 15-month high at 4.631%, and the 30-year topped out at 5.159%.
The S&P 500 posted its seventh weekly gain in a row, with growth focused in AI and big tech stocks. But on Friday, the Dow slid 1.07%, the S&P 500 gave up 1.24% and the Nasdaq Composite lost 1.54%, according to Reuters.
“There’s a realization that the market had gotten way ahead of itself,” Kenny Polcari, chief market strategist at Slatestone Wealth, told Reuters. He said investors weren’t watching the signals from the bond market and economic data closely enough. “It was caught up in this momentum AI trade.” Reuters
Nvidia will report results on Wednesday. Its stock has climbed 36% since hitting a low in March, while the Philadelphia SE Semiconductor Index is up over 60%, according to Reuters. The report could prove key for both Nvidia and rivals like AMD and Intel, which both dropped sharply on Friday after chip stocks were sold.
Nvidia needs to show results that match the run-up in its share price, Allen Bond, a portfolio manager at Jensen Investment Management, told Reuters. Yung-Yu Ma from PNC said whether Nvidia can hold onto its lead is now the focus, since competition is picking up.
Retailers take the stage in the second half of the week. Walmart’s numbers land Thursday. Home Depot, Target and TJX Cos. are also reporting. Investors are watching to see if higher prices for gas and food are hitting spending. Reuters said consumer spending is over two-thirds of the U.S. economy.
“At some point, these costs are going to catch up with consumers and are going to start to moderate spending,” Ma said. “That is probably what is more at stake for the retail earnings is, how resilient is the consumer?” Reuters
The selloff might let up if oil news turns better or if Nvidia gives proof that AI spending is still solid. The opposite could play out if crude jumps again. That could push yields up, lift bets on tighter Fed policy, and turn today’s valuation drop into a wider pullback. George Lagarias, chief economist at Forvis Mazars, told Reuters a “proper correction” would surprise him unless bond swings trigger a credit event. Reuters
