Nasdaq 100 slides; Intel drops 7%

U.S. stocks fell on Friday, May 15, after a jump in Treasury yields and higher oil prices pulled investors out of technology shares and ended a run of record highs. The Nasdaq-100 closed down 1.54% at 29,125.20, while the Nasdaq Composite fell 1.54% to 26,225.14 and the S&P 500 lost 1.24% to 7,408.50. The Dow Jones Industrial Average dropped 537.29 points, or 1.07%, to 49,526.17, according to market data. Intel was one of the session’s biggest drags in large-cap tech. Intel shares closed at $108.77, down 6.18% on the day, after trading as low as $105.02, according to Benzinga market data. CNBC reported that Advanced Micro Devices fell 5.7%, Micron Technology lost 6.6% and Nvidia dropped 4.4% as investors took profits in semiconductor names. The retreat followed a sharp move in the bond market. (finance.yahoo.com) The 30-year Treasury yield rose to 5.13%, its highest closing level since June 2007, while the 10-year Treasury yield climbed to 4.59%, according to Yahoo Finance and U.S. Treasury data. West Texas Intermediate crude settled at $105.42 a barrel and Brent crude ended at $109.26, CNBC reported. (benzinga.com) ### Why did chip stocks lead the decline? Intel and other semiconductor stocks fell as investors pulled back from a group that had led the market’s recent advance. CNBC cited Adam Crisafulli of Vital Knowledge as saying the sector had seen “an extremely unsustainable move in recent weeks” and remained exposed to profit-taking. Benzinga said the selloff hit AI-linked names and small caps especially hard as higher oil prices and a bond-market rout revived concern that interest rates could stay higher for longer. (finance.yahoo.com) Google Finance’s market summary also said the yield spike and inflation fears snapped the market’s record run. (cnbc.com) ### What role did bonds and oil play? Treasury yields rose as investors reassessed the inflation outlook. Yahoo Finance reported that the 30-year yield’s move above 5% tightened financial conditions, while CNBC said a week of inflation reports and elevated oil prices added to the pressure on equities. (benzinga.com) Oil added another source of concern. CNBC said crude prices climbed after President Donald Trump told Fox News he was “not going to be much more patient” with Iran and said “they should make a deal.” The move in energy prices came as markets also absorbed the end of Trump’s summit with Chinese President Xi Jinping without major new policy announcements. ### Did the market still hold onto any recent milestones? (finance.yahoo.com) Thursday, May 14, had marked a much stronger session. CNBC reported that the Dow had reclaimed the 50,000 level a day earlier and that the S&P 500 had closed above 7,500 for the first time. Benzinga separately reported that CNN’s Fear & Greed Index was at 66.1, in the “Greed” zone, before Friday’s selloff. (cnbc.com) Friday’s close erased those fresh records for the Dow and S&P 500, but the broader backdrop remained one of a market that had recently been driven by artificial-intelligence enthusiasm. CNBC cited Argent Capital Management portfolio manager Jed Ellerbroek as saying investor sentiment remained “very optimistic overall,” even as market breadth showed signs of strain. (cnbc.com) ### What should investors watch next week? Next week’s focus will shift to whether Treasury yields stay near Friday’s levels and whether the technology pullback spreads beyond semiconductors. Google Finance said upcoming earnings remained on the calendar after Friday’s selloff, while CNBC framed the day’s decline as a test of a market that had been on a record-breaking run. The next set of signals will come from retail earnings, oil prices and bond trading when U.S. markets reopen on Monday, May 18. (cnbc.com) Intel, Nvidia, AMD and the Nasdaq-100 will remain central to whether Friday’s slide proves limited to one session or extends into a broader retreat. (google.com)