S&P futures are down 0.3% Monday morning after Friday’s broad selloff, when all major U.S. indexes fell more than 1% and semis/memory were notable laggards. The weakness left most major indexes lower for the week. Global tone remains softer, with Japan and Hong Kong both down roughly 1% overnight and Europe off about 0.4%. Treasuries are little changed after last week’s sharp yield backup, the dollar is down 0.15%, gold is off 0.2%, silver is down 1.5%, Bitcoin futures are down 2.9%, and WTI crude is up 1.1%.
The market narrative is little changed: higher global bond yields, inflation concerns, fiscal worries, and technical pressure on the AI/momentum trade remain the key overhangs. JGBs remain a focal point after Japan budget headlines, while U.S. investors are also watching whether last week’s yield breakout continues. AI fundamentals remain intact, but stretched positioning is under scrutiny ahead of NVDA earnings Wednesday night. Middle East risk also remains an overhang, with Trump warning Iran that the clock is ticking and headlines suggesting the U.S. may consider renewed military activity. The Strait of Hormuz stalemate continues to raise concerns about energy prices, supply chains, and inflation spillovers. Softer-than-expected China activity data is also adding to global growth concerns.
Company News
- NEE / D: NextEra is reportedly in talks to acquire Dominion in a deal that would create a $400B+ utility giant.
- DAL: Higher after Berkshire Hathaway disclosed a new stake.
- BIO: Higher on reports that Elliott has built a sizable stake and will push management to boost the share price.
- MICC: Blackstone and CD&R are reportedly among private equity firms in early-stage talks around potential bids.
- RAMP: To be acquired by Publicis in a deal with an enterprise value of roughly $2.2B.
- TCPC: The U.S. Attorney’s Office for the Southern District of New York is reportedly examining valuation practices.
- SpaceX: Prospectus expected this week.
Earnings Calendar
This week brings a heavier earnings slate: HD Tuesday morning; TGT, LOW, TJX, ADI Wednesday morning; NVDA Wednesday after the close; WMT and DE Thursday morning; and ROST and WDAY Thursday after the close.
Economic Calendar
Today’s only major release is the NAHB housing market index, expected unchanged at 34 in May. Tuesday brings pending home sales and Fed commentary from Waller and Paulson. Wednesday has no major data, but Barr speaks and the April FOMC minutes are due at 2:00 p.m. Thursday brings claims, Philly Fed manufacturing, housing starts, flash PMIs, and comments from Barkin. Friday brings the final University of Michigan sentiment reading for May.
U.S. equities finished lower Friday, giving back part of the week’s gains, with the Dow down 1.07%, S&P 500 down 1.24%, Nasdaq down 1.54%, and Russell 2000 down 2.44%. The pullback reflected a risk-off mix of higher global yields, renewed pressure in AI/momentum trades, weak breadth, limited progress on the Trump-Xi summit, and ongoing uncertainty around the U.S.-Iran conflict. Treasuries sold off sharply, with the 2-year yield up 7 bp to 4.08%, the 10-year up 12 bp to 4.60%, and the 30-year up 10 bp to 5.12%; yields were up 18–25 bp for the week. The dollar index rose 0.5%, gold fell 3.1%, silver dropped 9.1%, Bitcoin futures declined 2.9%, and WTI crude surged 4.6% to $105.78. Macro data were stronger than expected, with the May Empire manufacturing index rising to 19.6, the highest since April 2022, and April industrial production up 0.7% versus 0.3% consensus. However, stronger data, hotter inflation concerns, higher crude, and soft Treasury auctions reinforced the market’s concern that the Fed may stay tighter for longer.
Sector performance was broadly negative. Energy was the only meaningful winner, up 2.32%, as crude moved back above $105/barrel. Financials and Consumer Staples each fell 0.32%, outperforming on a relative basis, while Communication Services lost 0.98% and Healthcare declined 1.08%. Materials was the weakest sector, down 2.74%, followed by Utilities down 2.40%, Consumer Discretionary down 1.83%, Industrials down 1.82%, Technology down 1.61%, and Real Estate down 1.56%. Semis and memory sold off sharply after a strong run, with TSLA and NVDA both down more than 4%. Consumer Discretionary extended recent weakness, especially homebuilders, autos, apparel, and home improvement, while outperformers included energy, staples, trucking, casual diners, casinos, financial data, payments, exchanges, insurance brokers, and software.
Information Technology
- AMAT: Beat and guided above expectations despite a high bar. Takeaways were positive on 2026 semi equipment sales growth guidance of 30%+, up from prior 20%+, along with better gross margins and improved visibility.
- FIG +13.2%: Q1 revenue, free cash flow, and adjusted net income beat, with growth accelerating to 46% y/y versus 39% consensus. Q2 guidance came in ahead, FY26 guidance was raised, and analysts highlighted seat expansion and AI credit consumption.
- MSFT +3.1%: Rose after Bill Ackman said Pershing Square had taken a stake, calling Microsoft a “core holding” and citing valuation.
- POET -22.4%: Fell after Q1 EPS turned to a loss despite higher revenue. The company also announced a 19M share/warrant issuance and said its CFO plans to retire this year.
- INFQ -11.0%: Declined despite a smaller Q1 EPS loss and higher y/y revenue, as the stock faced a high bar after recent gains.
- OpenAI: CFO said the company may look to raise additional capital.
- Semis / memory: Sold off sharply as investors reassessed stretched AI and momentum positioning.
Communication Services
- RUM -11.8%: Q1 earnings were light while revenue was largely in line. Management highlighted better audience monetization revenue, but higher sales and marketing expenses weighed on the reaction.
Consumer Discretionary
- PZZA +6.1%: Rose after reports that the company’s largest U.S. franchisee is working with Irth Capital to take Papa John’s private.
- BOOT: Comps and guidance were better than expected, standing out as a bright spot in a weaker consumer tape.
- Homebuilders / autos / apparel / home improvement: Extended recent weakness amid higher rates, rising gasoline prices, and consumer affordability concerns.
Consumer Staples
- MICC +10.9%: Rallied after reports that Blackstone and CD&R are among private equity firms in the early stages of exploring bids for Magnum Ice Cream.
Energy
- Energy +2.32%: Led the market as WTI crude rose 4.6% to $105.78 amid renewed concern around the Iran war and supply disruption risk.
Financials
- DXCM +6.6%: Though a Healthcare name, the activist angle was a notable governance/capital-allocation story: Elliott reportedly took a stake and reached a settlement that will add two independent directors to the board; the company also disclosed a $1B buyback.
- GEMI +6.1%: Q1 EPS, EBITDA, and revenue beat. Winklevoss Capital Fund made a $100M strategic investment at $14/share, with analysts positive on the mix shift toward services and interest revenue.
- NU -5.7%: Q1 revenue and adjusted net income missed consensus, with unfavorable origination mix pressuring gross profit and credit-quality metrics.
Healthcare
- DXCM +6.6%: Higher after reports that activist Elliott took a stake and reached a board settlement; Dexcom also announced a $1B share repurchase program.
Industrials
- FRMI -11.7%: Fell after the board amended bylaws to require approval from at least 70% of outstanding shares for proposed changes to board size or structure. The move follows a dispute with the former CEO, who claims control of roughly 40% of shares.
Eco Data Releases | Monday May 18th, 2026
S&P 500 Constituent Earnings Announcements | Monday May 18th, 2026
No constituents report today.
Data sourced from FactSet Research Systems Inc.
