New York, May 18, 2026, 20:03 (EDT)
Major U.S. index ETFs were flat to lower late Monday, with the Nasdaq and S&P 500 both edging down in the session as investors trimmed tech holdings and tracked oil and yields. The SPDR S&P 500 ETF Trust slipped 0.1% to $738.65. The Invesco QQQ Trust, which mirrors the Nasdaq 100, dropped 0.4% to $705.88. The DIA ETF, tracking the Dow, gained 0.3% at $497.01.
The move comes just days after the S&P 500 and Nasdaq hit record highs. On Monday, the Dow gained 159.95 points, or 0.3%, to close at 49,686.12. The S&P 500 edged down 5.45 points, or 0.1%, to 7,403.05. The Nasdaq lost 134.41 points, or 0.5%, finishing at 26,090.73.
Stocks didn’t see broad selling, but tech was weak. Reuters said traders pulled money out of tech names while Treasury yields and oil held inflation fears in place. The Philadelphia Semiconductor Index fell 3.3%. Energy shares outperformed, with the S&P 500 energy sector gaining 1.8%. “Oil prices were moving markets on a day-to-day basis,” said Burns McKinney, portfolio manager at NFJ Investment Group. Reuters
The 10-year Treasury yield rose earlier to a high not seen since February 2025, according to Reuters. Rising yields put pressure on stocks, since they make future earnings less attractive, which often hits high-priced tech stocks most. Nathan Peterson, director of derivatives research and strategy at the Schwab Center for Financial Research, said higher yields are “not necessarily a bull market killer,” but noted that how fast yields move is important. Schwab Brokerage
Nvidia stayed the main name for that trade. Shares dropped 1.4% to $222.32 late. Advanced Micro Devices dropped 0.7% to $420.99. Nvidia’s results are expected Wednesday. Its weight gives the stock outsized pull on both the Nasdaq and the S&P 500.
Oil held on to a central role in markets. U.S. crude finished up more than 3% but later trimmed those gains as President Donald Trump said he paused a planned Iran strike to open the door to talks, according to Reuters. Bloomberg listed crude at $107.37, while the U.S. 10-year yield was at 4.59%.
NextEra Energy and Dominion Energy are merging in an all-stock deal. Dominion investors will get 0.8138 NextEra shares for every Dominion share held. NextEra CEO John Ketchum tied the move to surging demand for power, saying, “Electricity demand is rising faster than it has in decades,” with data centers and larger grids fueling growth. Utilities took notice of the news. NextEra Energy Newsroom
Dominion jumped 9.4% to $67.56 after the deal news, but buyers didn’t get the same reaction. NextEra dropped 4.6% to $89.04. Reuters put the value of the deal at $66.8 billion, saying it would make one of the biggest electric utilities worldwide, but it’s still up to regulators.
Regeneron was the big loser. Shares dropped 9.9% to $629.68 after its melanoma therapy failed in a late-stage trial. BMO Capital Markets’ Evan Seigerman said “back-to-back key pipeline misses” are putting pressure on Regeneron’s drug development. Reuters pointed out the trial stacked Regeneron’s combo therapy against Merck’s Keytruda. There’s another trial in progress comparing it to Bristol Myers Squibb’s Opdualag. Reuters
Retail earnings could give the next signal on the consumer. Home Depot traded up 0.9% to $299.81 with results set for Tuesday. Walmart added 1.4% to $133.34 before it reports later this week. Barron’s described expectations for Home Depot as muted, with higher rates and weak housing still weighing on demand for home-improvement projects.
But things can change late in the day. Oil moving higher or more gains in Treasury yields would put new pressure on the soft landing view. Higher oil means more inflation worries. Higher rates could weigh on prices. If Nvidia misses, the AI names might get hit, and that trade could unwind fast. Small caps and consumer stocks might not offer much shelter.
Right now, markets look cautious but not panicked. The Dow stayed steady, energy picked up buyers, and big tech paused after a run. So Tuesday comes down to the Gulf headlines again and how bonds respond.
