Stock market news for May 19, 2026

Stocks closed decrease Tuesday, with the S&P 500 posting its third straight dropping session, as a bounce in bond yields threatened the bull market.

Traders additionally monitored the oil market following President Donald Trump’s cancellation of deliberate assaults on Iran.

The S&P 500 closed down 0.67%, ending at 7,353.61, whereas the Nasdaq Composite completed 0.84% ​​decrease at 25,870.71. The Dow Jones Industrial Average shed 322.24 factors, or 0.65% to shut at 49375.46.

Volatility within the bond market added a brand new wrinkle to the bull market. The 30-year Treasury yield hit 5.198% on Tuesday, or its highest level in nearly 19 years on Tuesday. The 10-year US Treasury notice yield — a crucial gauge for mortgage and auto loans and bank card debt — additionally sailed 6 foundation factors increased to 4.687%, marking its highest degree since January 2025.

The charge will increase come after a sequence of experiences final week displaying inflation was reviving again up because the warfare in Iran lifted oil costs. Higher charges on issues like bank cards and mortgages charges might curb client spending. Meanwhile, the rise in charges might mood long-term financial progress and expose the sky-high valuations seen lately in some chip shares.

“The bond vigilantes are at play right now,” mentioned Will McGough, Chief Investment Officer at Prime Capital Financial. “Everybody’s on to energy prices staying higher, which could lead into inflation that’s behind the curve a little bit.”

Bond vigilantes are institutional traders who unload authorities bonds to sign their disapproval of inflationary US financial insurance policies.

McGough added that traders could be sending a message that the Federal Reserve is behind the curve on inflation forward of Kevin Warsh’s swearing in as chairman of the Central Bank on Friday.

“There’s this narrative that new Fed chairmen tend to get tested by the markets,” McGough advised CNBC. “You could see the bond vigilantes were obviously testing him here, if you believe that theme.”

Crude costs have been down barely on Tuesday after President Donald Trump introduced late Monday that he was calling off a plan to attack Iran after the heads of three regional powers within the Middle East requested him to “hold off.” U.S. West Texas Intermediate futures shed 0.82% to settle at $107.77 per barrel. Meanwhile, Brent crude futureswhich function a global benchmark, have been final buying and selling 0.65% decrease at $111.37 per barrel.

Later within the day, the US reportedly seized in a single day an oil tanker linked to the Islamic Republic within the Indian Ocean, in keeping with three US officers who spoke with The Wall Street Journal.

Trump’s replace on Iran additionally helped the S&P 500 and Nasdaq get better some losses late within the session Monday, though they nonetheless ended decrease for a second day in a row.

Separately, semiconductor shares have been buying and selling combined on Tuesday as their selloff moderated.

The Philadelphia Semiconductor Index fell greater than 1% in earlier within the session as traders took revenue as a result of considerations about valuation and information heart spending sustainability, though it has since retraced these losses to commerce flat.

Nvidiawhich experiences its fiscal first-quarter earnings after the bell on Wednesday, closed down practically 1%, retracing a few of its losses earlier within the session. Micron ended the session roughly flat, reversing its short-lived decline after the opening bell. Qualcomm closed down greater than 4%, whereas Broadcom pulled again 2%.

“This is a well-deserved breather after an epic rally,” Jed Ellerbroek, portfolio supervisor at Argent Capital Management, advised CNBC. It’s an “Interesting time for the reversal, with it coming just a few trading days before the biggest chip stock in the world reports what will be outstanding earnings and guidance.”

Stocks had been on a tear earlier than the previous few periods, with the S&P 500 and Nasdaq hitting contemporary report highs final week, and the Dow briefly recapturing the 50,000 degree.