---
title: "Why Is the Stock Market Down Today, 5/18/26?"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/286793073.md"
description: "The stock market is down as the S&P 500 and Nasdaq 100 turn negative due to rising interest rates. The 10-year Treasury yield is at 4.60%, its highest since January 2025, impacting equity valuations. Higher yields could increase U.S. government debt payments by $1.5 trillion over the next decade. Morgan Stanley warns of a potential market correction if rates stay high, with ongoing bond volatility linked to geopolitical tensions."
datetime: "2026-05-18T15:06:33.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/286793073.md)
  - [en](https://longbridge.com/en/news/286793073.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/286793073.md)
---

# Why Is the Stock Market Down Today, 5/18/26?

After opening in the green, both the S&P 500 (SPX) and the Nasdaq 100 (NDX) are now in negative territory as investors assess rising rates.

### Claim 55% Off TipRanks

Trade QQQ with leverage

The 10-year Treasury yield is at 4.60%, its highest level since January 2025, while the 30-year yield is trading at 19-year highs. That poses an issue for stocks, as rising yields make bonds more attractive and pressure equity valuations with higher discount rates.

## **Higher Yields Raise Debt Costs and Correction Risk**

Furthermore, rising yields can result in higher U.S. government debt payments. The current 10-year yield is roughly 40 bps above projections from the Congressional Budget Office (CBO). That could tack on an extra $1.5 trillion to U.S. debt if rates remain there over the next decade, according to the Committee for a Responsible Federal Budget (CRFB).

Morgan Stanley warned on Monday that the stock market faces a "meaningful correction" if rates remain elevated. Chief Investment Officer Mike Wilson added that bond volatility will likely continue until the U.S.-Iran war draws to a close.

### Related Stocks

- [MS.US](https://longbridge.com/en/quote/MS.US.md)
- [.NDX.US](https://longbridge.com/en/quote/.NDX.US.md)
- [IAI.US](https://longbridge.com/en/quote/IAI.US.md)
- [PSQ.US](https://longbridge.com/en/quote/PSQ.US.md)
- [TQQQ.US](https://longbridge.com/en/quote/TQQQ.US.md)
- [SPY.US](https://longbridge.com/en/quote/SPY.US.md)
- [SQQQ.US](https://longbridge.com/en/quote/SQQQ.US.md)
- [QQQM.US](https://longbridge.com/en/quote/QQQM.US.md)
- [SDS.US](https://longbridge.com/en/quote/SDS.US.md)
- [SPXU.US](https://longbridge.com/en/quote/SPXU.US.md)
- [QID.US](https://longbridge.com/en/quote/QID.US.md)
- [VOO.US](https://longbridge.com/en/quote/VOO.US.md)
- [QQQ.US](https://longbridge.com/en/quote/QQQ.US.md)
- [IVV.US](https://longbridge.com/en/quote/IVV.US.md)
- [SH.US](https://longbridge.com/en/quote/SH.US.md)
- [ONEQ.US](https://longbridge.com/en/quote/ONEQ.US.md)
- [.SPX.US](https://longbridge.com/en/quote/.SPX.US.md)
- [MS-O.US](https://longbridge.com/en/quote/MS-O.US.md)
- [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md)
- [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md)
- [MS-I.US](https://longbridge.com/en/quote/MS-I.US.md)
- [MS-L.US](https://longbridge.com/en/quote/MS-L.US.md)
- [MS-P.US](https://longbridge.com/en/quote/MS-P.US.md)
- [MS-A.US](https://longbridge.com/en/quote/MS-A.US.md)
- [MS-F.US](https://longbridge.com/en/quote/MS-F.US.md)
- [MS-K.US](https://longbridge.com/en/quote/MS-K.US.md)

## Related News & Research

- [ROI-G7 long bond stress intensifies: Mike Dolan](https://longbridge.com/en/news/286204081.md)
- [2-Year Treasury Yield Rises to 4.122% — Data Talk](https://longbridge.com/en/news/286958688.md)
- [ANALYSIS-Bond yield spike is risk to unprepared equities market, investors warn](https://longbridge.com/en/news/286668628.md)
- [JPMorgan Chase's Preferred Stock Series DD Shares Cross 6% Yield Mark](https://longbridge.com/en/news/286955874.md)
- [08:45 ETThe Jed Foundation (JED) Publishes New Report on Mental Health Challenges Among Boys and Young Men](https://longbridge.com/en/news/286915417.md)