New York, May 19, 2026, 16:03 (EDT)
- Dow Jones Industrial Average dropped 0.65% to end at 49,364.31. S&P 500 and Nasdaq Composite slid too.
- The 10-year Treasury yield climbed to its highest since January 2025, then pulled back, as worries over rates continued to drive trading.
- Nvidia earnings and Federal Reserve minutes come up next, with investors eyeing both for direction.
Dow slips after hours on Tuesday as U.S. Treasury yields rise, dragging Wall Street down from its highs and cooling appetite for stocks.
The blue-chip index closed at 49,364.31, off 0.65%. The S&P 500 slipped 0.67% to 7,353.79. The Nasdaq Composite ended weakest among the big three, dropping 0.84% to 25,870.71.
Yields are back in focus for stocks. Reuters said the 10-year Treasury yield hit 4.687%, a level last seen in January 2025, then eased to about 4.65%.
Higher yields tend to make stocks pricier, especially for companies priced on future profits. Yields also push up borrowing costs for both households and businesses, and that can weigh on spending, squeeze margins and hit investment plans.
“One hundred percent of the story is yields,” Ben Sullivan, chief investment officer at AE Wealth Management, said to Reuters. Sullivan said investors are starting to accept that inflation and oil could stay stronger for longer than they wanted. Reuters
Oil hovered as Brent crude held above $110 a barrel. Traders kept their eyes on the conflict with Iran and concerns over movement in the Strait of Hormuz, a main energy lane. U.S. gasoline prices continued to climb, AP said.
Traders are now pricing in higher chances of a quarter-point Fed rate hike in December, with bets up to around 40%, Reuters said. A Reuters poll also showed most economists don’t expect the Fed to cut rates this year.
Aditya Bhave, Bank of America’s head of U.S. economics, told Reuters “both hikes and cuts are feasible.” He said the main forecast is for rates to stay unchanged. A cut seems more likely to come next year instead of this year. Reuters
Nasdaq dropped more than other indexes, putting focus back on AI stocks. Nvidia will post earnings Wednesday. AP said Nvidia’s numbers may play a part in whether tech keeps pushing markets higher after months of gains.
Home Depot gave its own take on consumers and housing. CEO Ted Decker told AP demand is tracking about the same as last year, even as “greater consumer uncertainty and housing affordability pressure” remain. AP News
The bond selloff may not be finished yet. Gregory Faranello, head of U.S. rates strategy at AmeriVet Securities, told Reuters the Treasury slide “can definitely continue.” ING’s Padhraic Garvey added that the 10-year yield might move up to 4.75%. Rising yields could keep squeezing the Dow, the S&P 500, and high-growth tech stocks. Reuters
Dow moves depend a lot on how the index is built. Since the Dow is price-weighted, stocks with higher share prices pull more weight in the index than lower-priced names. That’s different from the S&P 500 and Nasdaq Composite, where company market value guides the weighting.
Fed minutes hit Wednesday, with investors watching for any hints on rate policy. Nvidia’s report is also up, giving a read on AI demand. For now, bonds set the tone. Stocks followed.
