Stock Market Today, May 15: High Yields and Inflation Fears Weigh on Stocks at Midday

Major U.S. stock indexes declined midday on May 15 as rising Treasury yields, elevated oil prices, and AI-tech sector struggles reversed Thursday’s gains. The S&P 500 dropped 1.08% to 7,420.06, the Nasdaq Composite fell 1.36% to 26,272.23, and the Dow Jones Industrial Average declined 0.98% to 49,574.02. Treasury yields reached a one-year high near 4.6%, while WTI crude oil surpassed $100 per barrel, fueling inflation concerns. High-profile stocks like Nvidia and Amazon underperformed as traders shifted away from riskier assets. Applied Materials, despite beating earnings, also declined, while newly public chipmaker Cerebras Systems lost ground from its IPO surge. Globant, a software company, rose following strong AI-driven results. The Federal Reserve’s potential rate hike expectations weighed on equities, causing gold, silver, and Bitcoin to fall. Geopolitical tensions, including Iran’s ongoing conflict and restricted Strait of Hormuz traffic, added to market uncertainty. The CBOE Volatility Index surged over 7% to 18.50, signaling heightened market fluctuations. While today’s decline reflects investor caution, a single session does not indicate a broader trend. Trading has remained volatile since the start of the conflict, with inflation and oil prices as key factors. Analysts caution against overreacting, emphasizing the need for a long-term perspective amid short-term volatility.