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May 15, 2026 – 05:25

(Bloomberg) — Stocks fell with bonds after President Donald Trump said the US doesn’t need to reopen the Strait of Hormuz, deepening concerns in markets about quickening inflation and fading momentum in the artificial intelligence trade. Crude oil climbed.

MSCI’s Asian share index dropped 1.1%, while US equity-index futures slipped 0.2% as Trump’s comment added to speculation that oil prices will stay elevated for longer. Bloomberg’s gauge of the dollar rose for a fifth day.

The inflation concerns weighed on government bonds, with the Treasury two-year yield climbing three basis points to 4.05% and the 10-year adding four basis points to 4.52%. Japan’s 10-year yield jumped as much as seven basis points after data showed producer prices in the nation rose at the fastest annual pace since 2023.

Brent crude extended gains to more than 1% to trade above $107 per barrel after Trump said “they need the Strait more than we need it open, we don’t, we don’t need it at all.” The commodity has jumped about 75% this year.

The loss of momentum in equities came after strong corporate earnings and a resilient US economy drove global stocks to successive record highs in recent weeks on bets that spending on artificial intelligence will fuel profit growth. The rally has also overshadowed mounting concerns that oil above $100 a barrel may reignite inflation, reducing the scope for interest-rate cuts and potentially reviving the risk of further tightening.

“This looks more like a pause, potentially driven by profit taking and rebalancing by investors after a meaningful rally over the course of US earnings season,” said Anna Wu, a cross asset strategist at Van Eck Associates Corp. “We could see a slowdown in Asia tech rally, in the absence of meaningful new headlines.”

The absence, so far, of any significant breakthroughs from the bilateral summit between the US and China also weighed on markets.

While Trump said he had a great meeting with his Chinese counterpart Xi Jinping, tensions exist over Taiwan.

Shares in mainland China fluctuated after China urged reopening the key waterway as soon as possible and called for talks on the Iran war. The US president will end his visit later Friday.

“The market’s unsure how to digest the US-China talks,” said Hiroyuki Ueno, chief strategist at Sumitomo Mitsui Trust Asset Management. “Sure, there are signs of more economic cooperation, but what investors were really looking for in the immediate term was progress on Iran, and it doesn’t seem like there was any meaningful discussion on that.”

Rising bond yields in Japan, the US and the UK are amplifying the sense of caution, Ueno said. “With yields rising globally and no sign of the trend slowing, there are worries about the impact on broader capital flows, including into equity markets,” he added

What Bloomberg Strategists Say…

There has been a steady rise in defensive positioning as traders add to bets for higher yields and a stronger US dollar. There isn’t one catalyst but Japan’s PPI surge is adding fuel to a global inflation narrative which hurts sentiment.

— Mark Cranfield, MLIV. For full analysis, click here.

Elsewhere, the pound dropped for a fifth day after a new challenge to the leadership of UK Prime Minister Keir Starmer.

On a positive note, first-quarter S&P 500 profits likely grew about 27% from a year ago, marking a sixth straight quarter of double-digit expansion, according to data compiled by Bloomberg Intelligence.

It’s clear that Corporate America has become very skilled at adapting to a wide range of economic environments, according to Clark Bellin at Bellwether Wealth. For investors who missed the opportunity to put new money to work during the war-driven slide in March, he said “it’s not too late.”

“Stocks are still climbing the wall of worry, and we don’t think there is euphoria in markets just yet,” Bellin noted. “In fact, there is still plenty of skepticism, which suggests this bull market has more room to run.”

Corporate Highlights:

China agreed to buy 200 Boeing Co. planes, President Donald Trump said, in a multibillion-dollar deal that would mark the nation’s first purchase of US-made commercial jets in nearly a decade. Nvidia Corp.’s major server assembly partner Hon Hai Precision Industry Co. reported a stronger-than-expected increase in quarterly profit, highlighting sustained spending on hardware essential for AI. Gautam Adani and his nephew Sagar agreed to pay a total of $18 million to settle Securities and Exchange Commission allegations they made false and misleading representations about Adani Green Energy Ltd. Some of the main moves in markets:

Stocks

S&P 500 futures fell 0.2% as of 12:24 p.m. Tokyo time Nikkei 225 futures (OSE) fell 1.1% Japan’s Topix fell 0.4% Australia’s S&P/ASX 200 fell 0.1% Hong Kong’s Hang Seng fell 1.1% The Shanghai Composite was little changed Euro Stoxx 50 futures fell 1% Currencies

The Bloomberg Dollar Spot Index rose 0.2% The euro fell 0.1% to $1.1652 The Japanese yen was little changed at 158.52 per dollar The offshore yuan fell 0.1% to 6.7965 per dollar Cryptocurrencies

Bitcoin fell 0.3% to $81,178.13 Ether fell 1% to $2,274.37 Bonds

The yield on 10-year Treasuries advanced three basis points to 4.51% Japan’s 10-year yield advanced six basis points to 2.690% Australia’s 10-year yield advanced three basis points to 5.04% Commodities

West Texas Intermediate crude rose 1.4% to $102.54 a barrel Spot gold fell 0.8% to $4,613.48 an ounce This story was produced with the assistance of Bloomberg Automation.

–With assistance from Abhishek Vishnoi, Alice French and Carmeli Argana.

©2026 Bloomberg L.P.