Stocks Lower as Bond Yields Sound Inflation Alarm

MPC Markets Morning Call · May 17, 2026 · 8m

The S&P 500 fell 1.24% to 7,408.50, the Nasdaq dropped 1.54% to 26,225.15, and the Dow slid 1.07% to 49,526.17 — the biggest selloff since March as a global bond rout overwhelmed the AI rally. Despite Friday’s decline, the S&P 500 posted its seventh consecutive weekly gain. The 10-year Treasury yield surged above 4.5% to its highest since May 2025, Japan’s 30-year yield hit 4% (first since 1999), and UK 30-year gilts soared above 5.8% (28-year high). The SOX semiconductor index fell 4%, with Nvidia −4.4%, AMD −5.7%, and Intel −6.2%. WTI rose 4% to above $105 and Brent topped $109 as combative…