Nasdaq Opens Up 0.25% as Chip Stocks Rebound and Bond Rout Cools
Updated
Updated · Reuters · May 18
Nasdaq Opens Up 0.25% as Chip Stocks Rebound and Bond Rout Cools
12 articles · Updated · Reuters · May 18
The Nasdaq rose 64.3 points to 26,289.49 at the open and the S&P 500 added 6.6 points to 7,415.07, while the Dow slipped 45.1 points to 49,481.04.
Semiconductor heavyweights led the early gains as investors returned to growth stocks after last week's bond-driven selloff began to ease.
That pressure had intensified Friday, when the S&P 500 fell 1.2% and Treasury yields climbed to 4.63% amid worries new Fed Chair Kevin Warsh could tolerate higher inflation.
The rebound suggests equity markets are still leaning on AI and chip optimism, even as higher yields continue to test the broader rally.
Beyond oil prices, how is the Iran conflict permanently reshaping global supply chains?
With Japan's investors pulling back, who will now fund America's massive debt?
Can the AI infrastructure boom survive a global recession and rising capital costs?
Global Financial Shock 2026: How the Iran War and Strait of Hormuz Closure Drove Oil Prices Up 50% and Triggered Market Turmoil
Overview
In May 2026, global financial markets are thrown into turmoil as bond yields surge sharply, driven by persistent inflation concerns and mounting sovereign debts. This leads to higher borrowing costs for consumers, making mortgages and other major purchases more expensive, while savers benefit from stronger savings account and CD yields. The turmoil is intensified by geopolitical instability, particularly the Iran conflict and the closure of the Strait of Hormuz, which disrupts oil flows and fuels a global energy shock. These events combine to create significant inflationary pressures, forcing central banks and policymakers to navigate a challenging economic landscape.