Stock market today: Dow, S&P 500, Nasdaq drop amid rising bond yields

May 20, 2026 - 00:07

U.S. stocks slid on Tuesday as rising bond yields rattled investor sentiment and the market braced for a major earnings report from chipmaker Nvidia. The Dow Jones Industrial Average dropped more than 300 points, while the S&P 500 and the Nasdaq Composite each lost roughly 1%.

The sell-off was largely driven by a jump in the 10-year Treasury yield, which climbed to its highest level in several weeks. Higher yields make borrowing more expensive and can pull money out of stocks, especially high-growth tech shares. Investors also reacted to fresh economic data that pointed to stubborn inflation, raising concerns that the Federal Reserve may keep interest rates higher for longer than previously expected.

Adding to the cautious mood, the market is waiting for Nvidia's quarterly results, due after the closing bell on Wednesday. The company's performance is seen as a bellwether for the artificial intelligence boom, and any disappointment could trigger a broader tech sell-off.

All 11 sectors of the S&P 500 ended in the red, with technology and consumer discretionary names leading the declines. Major tech stocks like Apple, Microsoft, and Amazon all closed lower. Meanwhile, the small-cap focused Russell 2000 index also fell, reflecting broad weakness across the market.

Trading volume was slightly above average as investors repositioned ahead of the Nvidia report and the next round of inflation data due later this week.