Stock Market Dips as Inflation Concerns Persist; Nvidia Earnings Await

US stock markets stumbled on Monday as traders braced for major earnings reports and grappled with elevated oil prices fueling inflation fears from the ongoing Iran conflict. The S&P 500 shed nearly 0.6%, while investors closely watched Treasury yields and awaited critical earnings from tech giants including Nvidia on Wednesday.
Market Overview
US Markets Down on Monday: The S&P 500 fell 0.59% to 7,365 points on May 18, 2026. The Nasdaq and Dow also declined as investors assessed mounting inflation risks and geopolitical tensions. Stocks started slightly higher but retreated amid rising oil prices and Treasury yields.
Oil Prices Surge: Oil futures climbed as President Trump warned Iran the "clock is ticking" on negotiations. Brent crude gained 1.49% to $107.30/barrel, while WTI rose 1.55% to $102.74.
Major Earnings This Week:
- Nvidia reports earnings Wednesday, with KeyBanc raising its price target to $300
- Target and other retailers set to report, offering insight into consumer resilience amid energy shocks
- Walmart earnings scheduled for Thursday
Tech Sector Weakness: Applied Optoelectronics fell 10.1%, Regeneron Pharmaceuticals lost 11.4%, and Aehr Test Systems dropped 14.21%. However, Microsoft surged 4% after Bill Ackman revealed Pershing Square had built a position in the company.
Inflation and Fed Expectations: Markets priced in roughly 45% odds of a Fed rate hike by year-end, up sharply from 1% just a month ago. The 10-year Treasury yield spiked nine basis points to 4.55%, the highest in a year.