Nasdaq 100 Falls on Chipmaker Rout as Yields Rise: Markets Wrap

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May 19, 2026 – 16:30

(Bloomberg) — Wall Street’s crowded chipmaker trade continued to unravel, dragging down stocks on speculation that a surge from this year’s lows has gone too far amid war-fueled inflation risks that have sank bonds.

A closely watched gauge of semiconductor shares dropped 3.1%, extending a three-day rout that has put the measure close to the threshold of a technical correction. While conditions for a long and painful downturn aren’t in place, the high-profile group has taken a hit after a series of records fueled by the revival of the artificial-intelligence trade. The Nasdaq 100 lost 1.3%.

Not helping the situation was the fact that bonds got hammered anew, with 30-year yields hitting a level last seen in 2007. While oil fell as NATO is discussing the possibility of helping ships pass through the Strait of Hormuz if it isn’t reopened by July, elevated energy prices has stoked inflation fears. That’s boosting the odds that central banks will need to raise rates.

That all happened at a time when fund managers chasing the powerful rally in equities increased their allocations to stocks by the most on record this month, according to a Bank of America Corp. survey. They are now the most overweight on equities they have been since January 2022 and are close to triggering BofA’s sell signal, strategists led by Michael Hartnett said in a note.

“Yes, we remain tactically bullish, but we would not be maximally net long given the elevated probability of a pullback led by tech,” say the JPMorgan Market Intelligence desk led by Andrew Tyler, adding dips will likely be bought.

Corporate Highlights:

Alphabet Inc.’s Google agreed to create an artificial-intelligence cloud business with Blackstone Inc., aiming to compete with companies like CoreWeave Inc. in a burgeoning market. Intercontinental Exchange Inc., owner of the New York Stock Exchange, is adding futures contracts for computing power as the market for tracking the price of what’s driving AI technology continues to develop. A key gauge of Home Depot Inc. sales missed expectations in the latest quarter as muted housing demand and high borrowing costs limited consumer spending on improvement projects. Target Corp. has quietly emerged as one of this year’s hottest retail stocks, outperforming many staples and big-box peers. The rally has also raised the bar heading into quarterly results. Amer Sports Inc. raised its full-year guidance and first-quarter results beat estimates, buoyed by demand for Salomon shoes. Some of the main moves in markets:

Stocks

The S&P 500 fell 0.8% as of 10:25 a.m. New York time The Nasdaq 100 fell 1.3% The Dow Jones Industrial Average fell 0.3% The Stoxx Europe 600 rose 0.1% The MSCI World Index fell 0.6% Philadelphia Stock Exchange Semiconductor Index fell 3.1% Currencies

The Bloomberg Dollar Spot Index rose 0.5% The euro fell 0.5% to $1.1597 The British pound fell 0.4% to $1.3381 The Japanese yen fell 0.3% to 159.22 per dollar Cryptocurrencies

Bitcoin fell 0.7% to $76,318.73 Ether fell 0.7% to $2,101.74 Bonds

The yield on 10-year Treasuries advanced 10 basis points to 4.68% Germany’s 10-year yield advanced five basis points to 3.20% Britain’s 10-year yield advanced four basis points to 5.14% The yield on 2-year Treasuries advanced nine basis points to 4.13% The yield on 30-year Treasuries advanced seven basis points to 5.19% Commodities

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