Nasdaq Drops 0.6% as Oil Hits $110 and Treasury Yields Climb
Updated
Updated · Zacks Investment Research · May 19
Nasdaq Drops 0.6% as Oil Hits $110 and Treasury Yields Climb
13 articles · Updated · Zacks Investment Research · May 19
U.S. stocks traded lower Tuesday morning, with the Nasdaq off 166 points, the S&P 500 down 23, the Dow lower by 89 and the Russell 2000 off 13, even as pre-market futures recovered from earlier lows.
Oil and yields added pressure: WTI rose to $108 a barrel, Brent to $110, while the 10-year Treasury yield reached 4.617% and the 2-year hit 4.080% as the Iran war entered its 12th week.
The slide extends a rough patch for equities, already marking the worst two-session streak for tech-heavy indexes since last October.
Housing data and earnings are now in focus, with April pending home sales expected up 1.0% after 1.5% growth, while Home Depot beat Q1 estimates and held full-year guidance but its shares still slipped.
Later this week, investors will parse housing starts and permits, Toll Brothers and CAVA results, and Nvidia earnings for clues on whether sector resilience can offset geopolitical and rate pressure.
As bond yields and global tariffs rise, has the AI-driven stock market rally finally met its end?
Could a potential Taiwan conflict, not market jitters, trigger a true collapse of the global semiconductor industry?
With central banks fighting inflation, can the massive capital spending required for the AI revolution be sustained?
2025-2026 Asian Tech Market Correction: AI Boom, Geopolitical Risks, and Investor Repositioning
Overview
The Asian tech sell-off that began in late 2025 has evolved into a more complex situation by May 2026. While some Asian markets, like Seoul and Japan, are showing resilience and even growth in AI-linked semiconductor stocks, the broader global tech sector is facing clear declines. The Nikkei 225 Index remains strong, reflecting robust performance in certain tech areas, even as U.S. tech stocks lead a downturn. This uneven impact highlights how AI-driven demand is supporting select Asian tech sectors, while global investor caution and shifting market dynamics continue to shape the overall landscape.