Dow Jones S&P 500 Nasdaq today May 15: Dow Jones, S&P 500 and Nasdaq end this week lower as tech stocks slide, Treasury yields and oil prices climb after Trump-Xi China summit disappoints investors – US stock market performance today May 15
S&P 500, Nasdaq and Dow Jones Close Lower Amid Market Selloff
After weeks of strong gains largely driven by enthusiasm for artificial intelligence, markets have turned more cautious. The S&P 500 index closed at 7,408.50 points, with a decrease of 1.24%, and the Nasdaq Composite index closed at 26,225.14 points, with a decrease of 1.54%. The Dow Jones Industrial Average also fell, falling more than 537 points to end the session at 49,526.17.
Nvidia, Intel and AMD Leading Technology Stocks Fall
Much of the selling has focused on technology companies, which have recently been among the market’s biggest winners. Following the sharp rise in the sector, investors seem to have locked in profits. Intel fell more than 6%, while Advanced Micro Devices and Mikron Technology fell 5.7% and 6.6%, respectively. Nvidia also fell 4.4%.
Cerebras Systems, which rose 68% at its Nasdaq open the previous day, gave back some of those gains and fell 10% on Friday.
According to CNBC’s report, Vital Knowledge’s Adam Crisafulli said the tech sector has experienced “a highly unsustainable run in recent weeks” and remains vulnerable to taking profits regardless of headlines.
Microsoft Shares Soar After Bill Ackman’s Pershing Square Investment
A major tech stock moved against the broader trend. Microsoft rose 3% after Bill Ackman said Pershing Square had created a position in the company.
Rising Treasury Yields and Inflation Concerns Put Pressure on Markets
Rising Treasury yields added pressure on stocks. The 30-year Treasury yield rose above 5.1% as investors reacted to a series of inflation reports released throughout the week. Concerns about inflation were also linked to rising oil prices due to tensions with Iran.
Oil Prices Rise with Donald Trump’s Comments on Iran
Oil prices rose sharply on Friday; US West Texas Intermediate crude oil rose above $105 per barrel, and Brent crude oil rose above $109. This rise came after Trump said he “will no longer be patient” with Iran and added that “they need to make a deal,” according to CNBC.
Investors also appear unimpressed by the outcome of the Trump-Xi summit. Although the two sides agreed that the Strait of Hormuz should remain open, markets were hoping for larger policy announcements or breakthroughs.
Boeing Shares Continue to Fall Following China Jet Deal Announcement
Boeing shares continued to fall after Trump said China had agreed to buy 200 Boeing jets, slightly more than previous expectations. The stock fell another 3.8% after falling nearly 5% in the previous session.
Concerns Grow About Dependence on Big Tech Stocks
Some investors are becoming increasingly uneasy about how dependent the broader market rally has become on a small group of big tech companies. Jed Ellerbroek of Argent Capital Management noted that overall investor sentiment remains optimistic, but the broader market has not kept pace with the biggest tech names, according to the CNBC report.
It is feared that the Fed Interest Rate Increase will return with the increase in oil prices
On the other hand, concerns about oil prices and inflation are starting to shape expectations for the Fed. Traders now see the possibility that the Fed’s next move could be a rate hike rather than a cut, according to CME Group’s FedWatch tool.
Dan Niles of Niles Investment Management warned that sustained increases in oil prices are linked to recessions, saying: “When you see sudden increases in oil prices, it doesn’t really matter if they go down again,” adding: “But when oil … sees a 50% increase that lasts a quarter or two, that’s when you start to worry about a recession.”
FAQ
How much did the S&P 500 fall today?
The S&P 500 index closed at 7,408.50 points, down 1.24 percent.
Why did oil prices increase?
Oil prices started to rise after Donald Trump’s statements about Iran.
