S&P 500, Nasdaq Extend Losses as 4.631% Yields and 3.8% Inflation Rattle Stocks
Updated
Updated · Investing.com · May 19
S&P 500, Nasdaq Extend Losses as 4.631% Yields and 3.8% Inflation Rattle Stocks
13 articles · Updated · Investing.com · May 19
U.S. stocks slipped for a second straight session Monday, with the S&P 500 down 0.07% and the Nasdaq off 0.51% after both hit record highs last week.
April CPI rose 3.8% year over year and PPI jumped 6%, pushing markets to price a 50% chance of another Fed rate hike this year, up from 1% a month ago.
The 10-year Treasury yield climbed to 4.631%—its highest since February 2025—moving above the 4.5% level Morgan Stanley has flagged as a pressure point for equity valuations.
The Iran war has kept oil prices elevated and supply chains strained, while Nvidia's earnings due Wednesday are seen as a key test for AI-led tech gains that have powered the rally.
Against that backdrop, the report points investors toward dividend-paying U.S. stocks, highlighting seven names with yields of 5.1% to 6.8% and estimated upside of 21.9% to 68.1%.
The AI boom is fueling markets but also an energy crisis. Which one will break first?
Can the U.S. power grid be upgraded fast enough to prevent AI's explosive growth from stalling?