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#USMarketUpdate
Wall St ends lower as inflation worries push up yields | Reuters

SUMMARY
Indexes fall: Dow 0.65%, S&P 500 0.67%, Nasdaq 0.84%
After a choppy session, chips finish flat while software falls
Akamai Technologies shares sink after announcing senior notes offering
U.S. 10-year yields rally to highest levels in more than a year

May 19 (Reuters) - Wall Street's main indexes closed lower on Tuesday with the Nasdaq leading declines, after the benchmark 10-year Treasury yield climbed to its highest level in more than a year on mounting inflation concerns as oil prices stayed elevated and investors were anxious about the lack ‌of a peace agreement between the U.S. and Iran.

The S&P 500 and the technology-heavy Nasdaq marked their third straight day of declines as investors took profits after a steep rally that started in late March. Investors also considered the possibility that the next move by the Federal Reserve could be interest rate hikes, if inflation stays high.

While Brent crude futures settled down 0.73%, they were still above $110 a barrel as traders monitored the latest communications about the Middle East war which has all but closed the Strait of Hormuz, a crucial energy conduit. After announcing on Monday that he had held off on a planned military strike against Iran scheduled for Tuesday, due to a new proposal from Tehran to end the Iran war, U.S. President Donald Trump said that the U.S. may need to strike Iran again but that Iran was begging ⁠for a deal.

U.S. Vice President JD Vance said the U.S. and Iran have made a lot of progress in their talks and that neither side wants to see a resumption of the military campaign.

Meanwhile, with inflation expectations rising, the 10-year Treasury yield surged, in its third day of gains, to 4.687%, its highest level since January 2025. After paring gains it was around 4.66%...

Traders have started to price in higher probabilities for rate hikes from the Federal Reserve. The latest bets on a 25-basis-point increase in rates for December were at a 41.7% probability, while the probability for a 50-basis-point hike was 15.7%, up from 4.7% a week ago, according to CME Group's FedWatch, opens new tab tool. On Wednesday, investors will focus on minutes from the Fed's last policy meeting for clues on the extent of policymakers' support for pivoting ‌to a neutral ⁠stance from an easing bias...

Six of the 11 major S&P 500 sectors ended lower, with technology (.SPLRCT), opens new tab and communications services (.SPLRCL), opens new tab providing the biggest index-point drags on the benchmark index. Higher yields often put pressure on shares of high-growth companies ⁠because their valuations depend heavily on future profit expectations.

Materials (.SPLRCM), opens new tab was the biggest sector decliner, falling nearly 2.3%. The defensive healthcare (.SPXHC), opens new tab sector led gains with a 1.1% advance.

After outperforming earlier in the session, the S&P 500 software index (.SPLRCIS), opens new tab reversed course to lose ground and close down 1.2%. Afternoon trading in the Philadelphia Semiconductor Index (.SOX), opens new tab was choppy but it ended close to flat with a 0.03% gain after falling more than 3% earlier in the day.

Investors are waiting anxiously for AI chip leader Nvidia (NVDA.O), opens new tab to ⁠report quarterly results after the bell on Wednesday.

The performance of the world's most valuable company will be closely watched for evidence that AI-driven demand is strong enough to justify elevated valuations across semiconductors. Rosenblatt's James said investors were already preparing on Tuesday for Nvidia's report, as it often moves the entire market along with the semiconductor sector.

https://www.reuters.com/business/us-stock-futures-fall-chips-extend-slide-inflation-worries-persist-2026-05-19/

Wall St ends lower as inflation worries push up yields
https://www.straitstimes.com/business/companies-markets/wall-st-ends-lower-as-inflation-worries-push-up-yields

Reuters

Wall St slips as inflation worries push yields higher

Wall Street's main indexes fell on Tuesday as the benchmark 10-year Treasury yield climbed to its highest level in more than a year on mounting inflation concerns as oil prices stayed elevated and investors considered the ‌possibility of Federal Reserve…

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