S&P futures are down 0.5% Tuesday morning after major U.S. indexes finished mostly lower Monday, though breadth was better, with the equal-weight S&P 500 outperforming by roughly 70 bp and 7 of 11 sectors higher. The main story remains the momentum unwind, with semis and memory again the notable laggards, while Energy, Financials, Staples, software, transports, and housing outperformed. Global markets are mixed, with South Korea down more than 3%, Australia and Greater China higher, and Europe up roughly 0.9%. Treasuries are slightly weaker, the dollar is up 0.3%, gold and silver are lower, Bitcoin futures are slightly higher, and WTI crude is down 1.0% after Monday’s 3%+ gain.
The momentum pullback remains the key market narrative, with technical dynamics getting most of the blame even as the AI compute and capex demand story remains intact ahead of NVDA earnings this week. Treasury yields have stabilized, but inflation, fiscal, and political scrutiny around global sovereign debt remain an overhang. The Street is increasingly flagging higher rates as a temporary headwind for risk sentiment, while IPO supply and fading fiscal tailwinds are also getting attention. Geopolitics remains a background risk, though markets continue to look past the Middle East as long as there is no renewed kinetic escalation.
Economic Calendar
Pending home sales are due today, while Fed’s Waller speaks before the open and Paulson speaks after the close. Wednesday brings no major data, but Barr speaks and the April FOMC minutes are due at 2:00 p.m. Thursday features claims, Philly Fed manufacturing, housing starts, and flash PMIs, with manufacturing expected to slip to 53.7 from 54.5 and services expected unchanged at 51.0. Friday brings final University of Michigan sentiment and inflation expectations for May.
Company News
- HD: Kicks off retail earnings season this morning.
- GOOGL / BX: Alphabet and Blackstone agreed to create an AI cloud business using Google TPUs, positioning it to compete with names such as CoreWeave.
- INTC: Reportedly urging PC clients to increase use of CPUs built on its 18A production process amid an industry-wide CPU shortage.
- INTC / QCOM: Reportedly among potential buyers for AI chip startup Tenstorrent, which could be valued at more than $5B.
- ADI: Reportedly in advanced talks to acquire Empower Semiconductor, a voltage-regulation chipmaker, for $1.5B in cash.
- EL: Said talks with Puig about a potential combination are ongoing, though there is no deal to announce yet.
U.S. equities finished mostly lower Monday, though well off worst levels, with the Dow up 0.32%, S&P 500 down 0.07%, Nasdaq down 0.51%, and Russell 2000 down 0.65%. Breadth was better than the headline indexes suggested, with the equal-weight S&P 500 outperforming the cap-weighted index by roughly 70 bp and most sectors finishing higher. The macro backdrop remained centered on U.S.-Iran headline volatility, energy-price risk, and rate stabilization after last week’s sharp yield backup. Trump said Middle East leaders asked the U.S. to hold off on a planned military attack on Iran, while earlier headlines continued to swing between diplomacy and possible U.S. strikes. WTI crude rose 0.9% to $106.33, Bitcoin futures fell 2.9%, the dollar index declined 0.3%, and Treasuries were little changed to slightly firmer, with the 2-year yield down 2 bp to 4.06% and the 10-year flat at 4.60%. The May NAHB housing market index beat expectations, rebounding after April’s drop to the lowest level since September.
Sector performance showed a defensive and value tilt beneath the surface. Energy led, up 1.81%, helped by higher crude, followed by Consumer Staples +1.34%, Financials +1.21%, Real Estate +1.14%, Healthcare +0.42%, Communication Services +0.24%, and Utilities +0.05%. Technology was the weakest sector, down 0.97%, pressured by another pullback in semis, memory, and Mag 7 names, especially NVDA and TSLA. Industrials fell 0.42%, Consumer Discretionary lost 0.20%, and Materials slipped 0.14%. Outperformers included software, energy, banks, insurers, exchanges, payments, media, homebuilders, rails, MedTech, hotels, dollar stores, grocers, staples retailers, and telecom, while laggards included semis, memory, E&Cs, multis, tech hardware, networking/communications, autos, biotech, industrial metals, nuclear, quantum computing, and retail-investor favorites.
Information Technology
- CTSH +9.8%: Authorized a $2B increase to its share repurchase program, with $1B of buybacks expected to be completed in Q2.
- FFIV +4.7%: Upgraded to outperform from in-line at Evercore ISI, which cited AI inference traffic, core systems strength, and successful pricing.
- AMAT -5.3%: Downgraded to equal weight from overweight at Morgan Stanley, which said upward NAND WFE revisions may have less impact versus peers due to mix.
- Semis / memory: Weaker again, extending the recent AI/momentum unwind ahead of Nvidia earnings later this week.
- AI software / infrastructure: Dell reportedly added 1,000 AI Factory customers last quarter, while AI startup Decart raised capital at a $4B valuation.
Communication Services
- Media: Outperformed as part of the broader rotation into non-AI leadership.
Consumer Discretionary
- DAL: Higher after Berkshire Hathaway disclosed a new stake.
- M: Higher on Berkshire Hathaway positioning disclosures.
- TJX +1.9%: Initiated at buy at Truist, which argued its product access and convenient locations attract high-value traffic.
- MBLY -6.8%: Initiated underperform at Jefferies, which said shares already price in upside from higher-autonomy systems despite uncertain medium- and long-term outcomes.
- Carvana: Headlines noted its move to bring a digitally focused model to the new-car market, drawing pushback from traditional dealers.
Consumer Staples
- Grocers / staples retailers: Outperformed as investors rotated toward more defensive consumer exposure.
Financials
- TCPC -5.8%: Fell after reports that the U.S. Attorney’s Office for the Southern District of New York is examining valuation practices at BlackRock TCP Capital.
- Banks / insurers / exchanges / payments: Outperformed, with regionals particularly strong.
- Citigroup / BlackRock HPS: Announced a $17.5B private-credit program for EMEA.
Healthcare
- BSX +6.2%: Announced a $2B accelerated share repurchase as part of its previously announced $5B buyback authorization.
- BIO +13.9%: Rose after reports that Elliott Management has built a sizable stake and will push for stock-price improvement.
- REGN -9.8%: Fell after disclosing that a Phase 3 trial of fianlimab plus Libtayo failed to meet its primary endpoint in certain melanoma patients; multiple downgrades followed.
- UNH: Lower following Berkshire Hathaway’s latest positioning disclosures.
Industrials
- BRC +19.0%: Fiscal Q3 earnings and revenue beat, with strong organic growth across Americas/Asia and Europe/Australia. Management cited data-center construction as a tailwind and raised FY revenue guidance.
- RAMP +27.3%: LiveRamp agreed to be acquired by Publicis for about $2.17B in cash, or $38.50/share, representing roughly a 30% premium to Friday’s close.
- F: Announced a new power deal with EDF.
- E&Cs / multis: Underperformed as Industrials lagged.
Utilities
- D +9.4%: Dominion agreed to be acquired by NextEra Energy in an all-stock deal worth $75.97/share, or roughly $66.8B, representing a 23%+ premium.
- NEE -4.6%: Fell after confirming the Dominion deal, which would create the world’s largest regulated electric utility business and is expected to close in 12–18 months.
Eco Data Releases | Tuesday May 19th, 2026
S&P 500 Constituent Earnings Announcements | Tuesday May 19th, 2026
Data sourced from FactSet Research Systems Inc.
