New York, May 19, 2026, 11:02 (EDT)
- U.S. stocks slipped. The Nasdaq dropped over 1% as tech shares came under pressure.
- Treasury yields and oil prices stayed in the mix, with inflation worries sticking around for traders.
- Nvidia reports and Federal Reserve minutes are set for Wednesday, giving markets their next test.
Nasdaq led the drop as U.S. stocks slipped Tuesday morning. Rising Treasury yields and high oil prices weighed on the market, pulling back an AI-driven rally that had brought indexes close to all-time highs.
The S&P 500 dropped 0.69% to 7,352.22, with LSEG data from Reuters showing the Nasdaq Composite slipping 1.05% to 25,815.56 and the Dow Jones Industrial Average down 0.25% at 49,564.06. Quotes lagged by at least 15 minutes. Brent crude last changed hands at $110.67 per barrel. The U.S. 10-year Treasury yield hovered close to 4.61%.
The shift is now about money costs, not just profit-taking. Treasury yields touched 4.663%, a level last seen in January 2025. That came as global bonds sold off and worries over Middle East oil sent up inflation fears, pushing yields higher.
Ozkardeskaya at Swissquote Bank said the macro backdrop is still “unideal for equities.” She noted that investors have already priced in stronger earnings, and markets are again factoring in geopolitical and economic risk. That has hurt tech shares, she said. Reuters
Materials was the hardest hit sector, falling 2.3%. Consumer discretionary names also pressured the S&P 500. On the NYSE, losers beat winners almost 3-to-1. On the Nasdaq it was 2.31-to-1. The selling was wide enough that it showed up across the board.
Some tech names managed to find support. Software stocks like Workday, Intuit and ServiceNow all traded higher, though Akamai Technologies dropped after it said it will sell $2.6 billion in convertible bonds, which can be exchanged for stock under specific terms.
Nvidia stays in focus for markets. The chipmaker will report after Wednesday’s close. LSEG analyst numbers from Reuters see revenue jumping close to 80% to just under $79 billion. Nvidia’s AI supply chain is linked to Microsoft, Amazon and Alphabet. Their spending on data centers ties the story to the bond-market squeeze and tech stock values.
Home Depot’s first quarter numbers landed mixed. Sales hit $41.8 billion, up 4.8%. Comps edged up 0.6%. Net earnings dropped to $3.3 billion. CEO Ted Decker said demand matched last year, though he pointed to “greater consumer uncertainty and housing affordability pressure.” The company stuck with its 2026 outlook. Home Depot Investor Relations
The Federal Reserve is back on the radar after it put out its April 28-29 policy statement on April 29. By usual procedure, the central bank releases full minutes three weeks after the decision, so investors are watching Wednesday’s release to see how Fed officials talked about inflation and rates.
Bulls are still watching bonds. ING’s Padhraic Garvey says the 10-year yield could go to “4.75%.” Bryn Mawr Trust’s Jim Barnes called this a “different interest rate environment.” Rising yields could force growth stocks into another round of valuation cuts, even if earnings hold up. Reuters
