--- title: "U.S. Stock Market Outlook | Three Major Index Futures All Decline, Google I/O Conference Kicks Off Tonight" type: "News" locale: "en" url: "https://longbridge.com/en/news/286908102.md" description: "On May 19th, the three major U.S. stock index futures all fell, with Dow futures down 0.21%, S&P 500 index futures down 0.39%, and Nasdaq futures down 0.71%. Meanwhile, major European stock indices generally rose, and WTI and Brent crude oil prices fell. U.S. President Trump decided to postpone military strikes against Iran to allow time for peace negotiations, while Iran stated it would take new measures to respond to potential attacks. The European Union plans to reach an agreement to reduce U.S. import tariffs" datetime: "2026-05-19T12:02:05.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/286908102.md) - [en](https://longbridge.com/en/news/286908102.md) - [zh-HK](https://longbridge.com/zh-HK/news/286908102.md) --- # U.S. Stock Market Outlook | Three Major Index Futures All Decline, Google I/O Conference Kicks Off Tonight ## Pre-Market Market Trends 1. As of May 19 (Tuesday), U.S. stock index futures are all down before the market opens. As of the time of writing, Dow futures are down 0.21%, S&P 500 futures are down 0.39%, and Nasdaq futures are down 0.71%. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260519/1779191613987961.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) 1. As of the time of writing, the German DAX index is up 1.44%, the UK FTSE 100 index is up 0.51%, the French CAC40 index is up 0.67%, and the Euro Stoxx 50 index is up 0.59%. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260519/1779191551106673.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) 1. As of the time of writing, WTI crude oil is down 0.59%, priced at $103.76 per barrel. Brent crude oil is down 1.12%, priced at $110.84 per barrel. ![image.png](https://imageproxy.pbkrs.com/https://img.zhitongcaijing.com/image/20260519/1779191579808478.png?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg) ## Market News **U.S.-Iran standoff continues: U.S. postpones military strikes against Iran, Iranian military claims it will "open a new front" if attacked again.** President Trump stated on Monday that at the request of several Middle Eastern leaders, the U.S. has decided to postpone the planned military strikes against Iran scheduled for Tuesday to allow more time for peace negotiations. However, he also warned that if a "acceptable agreement" cannot be reached, the U.S. military has been instructed to be "ready at any time for a comprehensive and large-scale attack on Iran." On the other hand, an Iranian parliament member stated in an interview that Iran has never initiated a war and has never left the negotiating table. Meanwhile, an Iranian military spokesperson stated that if the enemy "makes another misjudgment" and attacks Iran again, Iran will respond by "opening a new front with new tools and methods." **With the July 4 tariff deadline approaching, the EU plans to reach an agreement on Tuesday to lower U.S. import tariffs.** According to the terms of the agreement reached last July at Trump's Turnberry golf resort in Scotland, the EU agreed to eliminate import tariffs on U.S. industrial goods and provide preferential access for U.S. agricultural and seafood products. In exchange, the U.S. will impose a 15% tariff on most EU goods. However, nearly 10 months later, the European Parliament and the EU Council, which represents various EU governments, still need to reach consensus on a legislative text for the EU's tariff reductions to take effect. The main disagreement between the two sides is over safeguards to prevent Trump from violating the agreement. Negotiators from the European Parliament and the Council will begin what is expected to be the final round of negotiations at 9 PM. EU lawmakers involved in the negotiations are confident that an agreement will be reached later on Tuesday or early Wednesday **OECD warns: The world is sinking into a "low growth + high inflation" quagmire, and the economic outlook is deteriorating sharply.** Matthias Cormann, Secretary-General of the Organisation for Economic Co-operation and Development (OECD), stated during a break at the G7 meeting that the risks to global economic growth prospects have further worsened due to the ongoing conflict in the Middle East. In an interview with the media on Tuesday, Cormann said, "The overall assessment is that it is putting downward pressure on economic growth and upward pressure on inflation," adding, "We provided a preliminary assessment in our mid-term economic outlook in March, but we will formally revise that assessment in the coming weeks. It is evident that growth is facing downward pressure, and inflation is facing upward pressure." **Optimism is overflowing! Bank of America’s latest survey: Global fund managers' equity overweight ratio hits a record high in May.** According to the monthly fund manager survey released by Bank of America on Tuesday, driven by positive expectations for earnings growth and the possibility of Federal Reserve rate cuts, global fund managers significantly increased their equity holdings in May, with the overweight ratio reaching a historic high. The data shows that a net 50% of fund managers chose to "overweight" stocks, a significant rise from 13% last month; the average cash holding ratio among institutions fell from 4.3% to 3.9%. Only 4% of respondents expect the economy to face a hard landing with significant contractions in both growth and employment, while as many as 39% believe the economy will achieve a soft landing. This Bank of America survey was conducted from May 8 to 14, involving 200 asset management professionals who collectively manage assets totaling $517 billion. **Japanese Finance Minister signals: Will intervene in yen if necessary, but aims not to push up U.S. Treasury yields.** During the G7 finance ministers and central bank governors meeting in Paris, Japanese Finance Minister Shunichi Suzuki sent a clear signal regarding exchange rates: Japan will take immediate action if there is excessive market volatility. After the first day of the meeting, she told the media, "As we have said before, if necessary, we will respond appropriately at any time." However, she emphasized that any intervention to buy yen and sell dollars would be predicated on not pushing up U.S. Treasury yields. Suzuki also pointed out to representatives from various countries that fluctuations in oil prices continue to impact the foreign exchange market and sovereign bond yields, which is one of the important driving factors behind recent exchange rate changes. **It is reported that the U.S. SEC will promote a stock "tokenization" trading plan, possibly without the consent of listed companies.** The U.S. Securities and Exchange Commission (SEC) is preparing to introduce a regulatory exemption framework for tokenized stocks, which could fundamentally reshape the landscape of the U.S. stock market. According to informed sources, the SEC is expected to officially release the aforementioned "innovation exemption" policy as early as this week, creating a new channel for investors to trade U.S. stocks through digital tokens. Reports indicate that the SEC is inclined to allow the trading of a "third-party" token. This token is essentially a synthetic tool that tracks stock prices and can circulate on decentralized crypto platforms even without the authorization of the listed company, but it may not necessarily carry the voting rights or dividend rights of common stock ## Individual Stock News **Google (GOOGL.US) I/O 2026 is about to begin, with seven major lines determining the valuation of "full-stack AI."** At 1 AM Beijing time on May 20, the Google I/O 2026 Developer Conference will officially open in California. The focus of the conference includes the iteration of the Gemini model, AI agents, smart shopping, monetization of AI search, Google Cloud, TPU sales, and a $200 billion "hedged" collaboration with Anthropic. **With a surge in AI investment, Meta (META.US) is busy "changing blood": 7,000 people are reassigned to AI roles, while simultaneously laying off 8,000.** According to an internal memo disclosed, Meta is reallocating 7,000 employees to AI-related positions, covering newly formed teams such as application AI engineering and agent transformation accelerators, to promote the company's transition to an AI-first organizational structure. These 7,000 reassigned employees will join teams including Application AI Engineering (AAI) and Agent Transformation Accelerator. These projects are led by Meta's Chief Technology Officer Andrew Bosworth, aiming to develop AI agents capable of autonomously performing tasks currently executed by humans. The Central Analytics team will provide productivity and data analysis support for this agent development. Meanwhile, the company expects to lay off about 8,000 employees globally starting this Wednesday (May 20), accounting for approximately 10% of its total workforce. **$66.8 billion merger plan finalized, the U.S. power industry may welcome a super-large "energy giant."** Reports indicate that two U.S. energy giants—NextEra Energy (NEE.US) and Dominion Energy (D.US)—recently disclosed a significant merger plan with a transaction scale of $66.8 billion, which is expected to become the largest merger in the global energy sector this year. This merger will create a super-large power group spanning multiple fields. According to corporate disclosures, the enterprise value of the new company after the merger is expected to reach $420 billion, with a market capitalization of approximately $249 billion. The group will not only achieve a leap in energy supply scale but will also accelerate the layout of AI infrastructure support by integrating resources, especially providing stable power support for energy-intensive data centers. **Google partners with Blackstone (BX.US) to create a self-developed TPU cloud company, directly challenging CoreWeave.** Google has reached an agreement with Blackstone Group, the world's largest alternative asset management company, to jointly establish an AI cloud computing company aimed at directly competing with emerging cloud service providers like CoreWeave Inc. (CRWV.US) in this rapidly growing market. According to a statement released on Monday, Blackstone will initially provide $5 billion in equity capital for the project, becoming the controlling shareholder of the new company. According to insiders, if leveraged financing is included, the total investment scale will reach $25 billion. By 2027, the new company is planned to have a computing capacity of 500 megawatts. The related data centers will use Google's self-developed seventh-generation Tensor Processing Unit (TPU) "Ironwood." **Revenue and profit targets hard to conceal concerns, Home Depot (HD.US) Q1 same-store sales slightly increased by 0.6%, reflecting the chill in the housing market.** Faced with rising oil prices, declining consumer confidence, and a still sluggish housing market, American home retail giant Home Depot (HD.US) delivered a mixed earnings report. For the first quarter of fiscal year 2026 ending May 3, Home Depot achieved revenue of $41.77 billion, a year-on-year increase of about 5%, exceeding market expectations of $41.52 billion. Net profit was $3.29 billion, or $3.30 per share, down from $3.43 billion and $3.45 per share in the same period last year. Adjusted earnings per share were $3.43, higher than the expected $3.41. However, the key metric for measuring retail health—same-store sales—only grew by 0.6%, below analysts' estimates. **Reports suggest Analog Devices (ADI.US) is close to acquiring Empower for $1.5 billion.** According to insiders, global analog chip giant Analog Devices (ADI.US) is in advanced negotiations to acquire Silicon Valley AI power management chip startup Empower Semiconductor for approximately $1.5 billion in cash. Empower, headquartered in Milpitas, California, is a startup focused on AI processors and power management chips for hyperscale data centers, having raised over $216 million in total funding. ## Important economic data and event forecasts Beijing time 20:15: U.S. ADP employment weekly change for the week ending May 2 will be released. 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