Dow slides 400 points as rising yields and oil prices hit tech stocks

• Bond yields surged to multi-month highs (10-year at 4.56%, 30-year above 5.1%) as markets priced in 40% probability of December Fed rate hike due to inflation concerns
• Oil prices jumped nearly 3% with Brent crude at $109 and WTI near $104 per barrel as Iran conflict disrupted critical shipping routes
• Tech stocks retreated sharply after record highs, with semiconductor names including Nvidia, AMD, and Intel declining 3-6% as rising yields pressured high-growth valuations

Market Summary: Dow Slides 400 Points on Yield Surge and Tech Selloff

Key Market Movements:

US equities declined sharply on May 15, 2026, with the Dow Jones falling approximately 400 points (-0.8%), the S&P 500 dropping 1.13%, and the Nasdaq leading losses at -1.58%. This selloff followed record highs achieved the previous session.

Bond Market Developments:

Treasury yields surged as inflation concerns intensified. The 10-year yield climbed to approximately 4.56% (highest since May 2025), while the 30-year yield exceeded 5.1%, approaching 2023 levels. The CBOE Volatility Index rose to 19.2, reflecting heightened investor anxiety.

Energy Market Pressures:

Oil prices extended gains amid Middle East tensions and Strait of Hormuz disruptions. Brent crude rose nearly 3% to around $109/barrel, while WTI climbed toward $104. The ongoing Iran conflict and potential supply disruptions fueled concerns about persistent inflation.

Technology Sector Weakness:

High-growth tech stocks retreated significantly after an AI-driven rally. Major decliners included Nvidia (-3.6%), Intel (-6.2%), AMD, and Micron Technology. Applied Materials fell despite beating revenue forecasts. Microsoft was a notable exception, posting gains. Cerebras Systems pulled back 2.3% after Thursday's 90% debut surge.

Federal Reserve Outlook:

CME FedWatch tool shows the probability of a December 2026 rate hike doubled to approximately 40% over the past week, driven by persistent inflation expectations.

Geopolitical Developments:

The Trump-Xi summit concluded without major breakthroughs on trade, tariffs, Taiwan, and semiconductors, disappointing markets despite agreement on keeping the Strait of Hormuz open.

Market Context:

Despite Friday's decline, the S&P 500 and Nasdaq remained positioned for their seventh consecutive weekly gain, highlighting the rally's resilience before this pullback.