Dow futures slip 65 points: 5 things to know before markets open

• Semiconductor stocks broadly declined with Micron down 1%, Seagate falling 1.6%, and Western Digital losing 2.3% as investors took profits after a strong run and higher Treasury yields pressured tech valuations.
• The 10-year Treasury yield eased to 4.587% after touching 4.618%, its highest since February 2025, while Brent crude remained elevated above $110 despite a 1.5% decline following Trump's delay of a military strike against Iran.
• Key market catalysts include Wednesday's Federal Reserve minutes for policy signals and Nvidia earnings to test AI demand justification, plus Walmart results to gauge consumer health amid elevated energy costs and inflation.

Market Summary: US Futures Decline on Tech Weakness Ahead of Key Events

Market Overview:

US stock futures slipped in overnight trading on May 19, 2026, with Dow futures down 65 points (-0.13%), S&P 500 futures falling 0.23%, and Nasdaq 100 futures declining 0.46%. Technology and semiconductor stocks led the downturn.

Key Sector Developments:

*Semiconductors Under Pressure:* Chip stocks weakened ahead of Nvidia's highly anticipated earnings report due Wednesday. Memory and storage stocks saw profit-taking after recent gains: Micron Technology fell 1%, Seagate Technology dropped 1.6%, and Western Digital declined 2.3%. Rising Treasury yields have pressured technology valuations.

*Energy Markets:* Brent crude eased 1.5% but remained elevated above $110 per barrel amid ongoing Middle East tensions. WTI crude fell to $106.50. President Trump delayed a planned military strike against Iran due to ongoing negotiations, though geopolitical uncertainty persists as a key inflation risk.

*Fixed Income:* The 10-year Treasury yield eased to 4.587%, down 5.4 basis points, after touching 4.618%—its highest level since February 2025.

Upcoming Catalysts:

• Wednesday: Federal Reserve meeting minutes (investors seeking clarity on monetary policy stance and potential shift from easing bias)
• Wednesday: Nvidia earnings (market looking for justification of AI-driven valuations)
• This week: Walmart earnings (insight into consumer resilience amid higher energy costs and inflation)

Market Sentiment:

Risk appetite remains fragile due to geopolitical tensions and frustration over lack of progress in US-Iran negotiations. The AI sentiment indicator shows 22/100 (bearish), reflecting cautious positioning ahead of critical economic data and corporate earnings.