On May 18, the Dow Jones Industrial Average rose by 159.95 points, or 0.32%, to close at 49,686.12. The S&P 500 fell by 5.45 points, or 0.07%, to finish at 7,403.05, while the Nasdaq Composite dropped 134.41 points, or 0.51%, to end at 26,090.73.
The weakness in technology stocks contributed to the declines. The information technology sector within the S&P 500 fell by 0.97%, and the Philadelphia Semiconductor Index dropped by 3.3%. Nvidia saw a 1.3% decrease ahead of its earnings report this week, as profit-taking pressure increased following a recent surge in AI semiconductor stocks.
Rising oil prices and interest rates also posed challenges for growth stocks. West Texas Intermediate (WTI) crude oil closed at $108.66 per barrel, while Brent crude finished at $112.10. Concerns over disruptions to oil shipments through the Strait of Hormuz due to tensions with Iran have pushed prices higher.
The yield on the 10-year U.S. Treasury note reached a high of 4.659% during the day, marking its highest level since February 2025, before settling at around 4.591%. High oil prices are contributing to inflationary pressures, while elevated interest rates are increasing valuation concerns for technology stocks.
However, news that President Donald Trump has postponed military action against Iran, leaving room for negotiations, helped to mitigate some of the market's losses. Despite this, uncertainty remains as the possibility of military response in the event of failed negotiations lingers.
Sector performance was mixed. The S&P 500 energy sector rose by 1.8%, marking the highest gain among major sectors, while the information technology sector experienced the largest decline.
In individual stocks, Dominion Energy surged by 9.4% following NextEra Energy's announcement of its acquisition, while NextEra Energy fell by 4.6%. Regeneron Pharmaceuticals dropped by 9.8% after disappointing clinical results for its skin cancer treatment.
This week, the market's focus will be on Nvidia's earnings report. Given that AI-related stocks have recently led the rally, Nvidia's performance and guidance are expected to be key indicators for a potential rebound in technology stocks. Earnings reports from major retailers, including Walmart, will also provide insights into consumer trends amid rising oil prices and inflationary pressures.
* This article has been translated by AI.
Copyright ⓒ Aju Press All rights reserved.