---
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.

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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)
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- [MS-Q.US](https://longbridge.com/en/quote/MS-Q.US.md)
- [MS-E.US](https://longbridge.com/en/quote/MS-E.US.md)
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