Pro UltrPro Shrt S&Pro 500

Stock funds reduce net short positions in S&P 500 index

S&P 500 and Nasdaq 100 Index Futures Turn Up

US Stock Futures Fall, Dow Down 0.89%

US CPI data released in February

Gundlach Predicts S&P 500 May Drop to 3200 Points as Investor Buying Behavior Intensifies

OPTIMI HEALTH CORP

HCW Biologics

Silexion Therapeutics

Vida Global

GCL Global

BiomX

MetaVia

Micware

MicroAlgo

The April minutes from the Federal Open Market Committee reveal concerns over inflation risks linked to the Middle East conflict, AI, and tariffs. Policymakers noted potential upward pressure on inflation due to energy prices and supply chain disruptions. A high level of dissent was observed, with some members advocating for a more cautious approach to interest rates. Future meetings may see discussions on rate increases, influenced by ongoing geopolitical tensions and economic data.

Forbes

Fed April Meeting Minutes Offer Color On Handling Rising Inflation Risks

.SPX

IUSV

SPXU

AVLV

UPRO

Don’t Panic, Says Our Top Technical Strategist. The Charts Say an S&P Pullback from Here Could Be Constructive.

Barchart Option

S&P 500

iShares Core S&P US Value

Ultr S&P 500 Pro

VG S&P 500

VG Value

SPDR S&P 500

iShares Core S&P 500

iShares Core S&P US Growth

Schw Us L-Cp Grw

Avantis US Large Cap Value ETF

VG Growth

Pro UltrPro S&Pro 500

Don’t Panic, Says Our Top Technical Strategist. The Charts Say an S&P Pullback from Here Could Be Constructive.

The article discusses the impact of AI on the US economy, highlighting a significant increase in capital expenditures by major tech companies, which could contribute a third of GDP growth. While AI spending is boosting the economy, concerns arise over consumer spending sustainability and a low personal savings rate. The labor market remains resilient, with AI-related job losses being minimal so far, but future implications remain uncertain.

ZeroHedge

Amazon

Alphabet

Alphabet - C

Microsoft

Meta Platforms

Goldman Sachs

GS Hldg R

The AI Economy, Part 1: Looking Beyond The Facade

Kevin Warsh has been confirmed as the new chairman of the US Federal Reserve. While he asserts commitment to the Fed's independence, concerns arise about potential government influence. Warsh has criticized the Fed's interest rate strategies, reflecting some of President Trump's views, which may impact bond investors.

Businesstimes News

What bond investors should know about a Warsh-led Federal Reserve

Morgan Stanley's Mike Wilson warns that equities may face a significant correction if bond market volatility continues, despite raising the 12-month S&P 500 target to 8,300. The S&P 500 has recently retreated from record highs, influenced by rising Treasury yields due to inflation fears linked to the Iran conflict. A resolution to this conflict is seen as crucial for stabilizing yields and supporting broader earnings growth, which remains underappreciated by investors.

- Morgan Stanley's Mike Wilson warns that equities risk a significant correction if bond market volatility continues and long-term yields rise.  
- The S&P 500 has already pulled back from a record high amid inflation fears linked to the Iran conflict, with the 30-year Treasury yield reaching its highest level in nearly three years.  
- While the bank maintains a bullish long-term outlook, raising the S&P 500 target to 8,300, it emphasizes that a resolution to the Iran conflict is crucial for stabilizing rates and ensuring broader profit growth.

Investinglive

Morgan Stanley

MORGAN STANLEY DEP SHS EA REP 1/1000 SHS NON CUM PFD O

MORGAN STANLEY DEP SHS REPSTG 1/1000TH PFD SER Q

MORGAN STANLEY DEP SHS REPS 1/1000 7.125% PFD E

MORGAN STANLEY NON-CUM DEP SH REP 1/1000 PFD SER I

MORGAN STANLEY 4.875 DEP SHS REP 1/1000 NCUM PFD SR L

MORGAN STANLEY 6.5%DEP SHS REPSTG 1/1000 NON CUM SER P

MORGAN STANLEY DEP SHS REPS 1/1000 PFD SER 'A'

MORGAN STANLEY DEP SHS REPR 1/1000TH INT PFD SER 'F' FX

MORGAN STANLEY DEP SHS REP 1/1000 NON-CUM PFD STK SER K

Morgan Stanley warns bond rout could trigger equity correction, still sees S&P500 @ 8300

.NDX

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.

- The S&P 500 and Nasdaq 100 have moved into negative territory as rising Treasury yields are impacting investor sentiment.  
- The 10-year Treasury yield has reached 4.60%, while the 30-year yield is at a 19-year high, which increases the attractiveness of bonds over stocks and may raise U.S. debt costs significantly.  
- Morgan Stanley cautions that if elevated rates persist, a meaningful correction in the stock market is likely, particularly amid ongoing bond volatility.

Tip Ranks

NASDAQ-100

ISHRS Us Brokers & Sec Exchg

ProShares Shrt QQQ

Proshares UltraPro QQQ

Proshares UltraPro Short QQQ ETF

Invesco Nasdaq 100 ETF

Proshares Ultrashort S&P500 ETF

Pro Ultrshort Qqq

Invesco QQQ Trust

Pro Shrt S&P 500

Fidelity Nasdaq Composite Index ETF

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

RBC forecasts the S&P 500 index to reach 7,900 points in 12 months, suggesting a 7.7% upside. The bank warns of potential market pullbacks of 5% to 10%, but a significant decline of 14% to 20% is unlikely unless recession risks emerge. This outlook is based on AI-driven earnings growth, with risks from inflation, interest rates, and geopolitical factors. RBC remains optimistic about the U.S. stock market and growth stocks.

CoinLive

ISHRS Russ 1000 Growth

SPDR S&P 600 S-Cp Val

VG Mga Cap 300 Grw

VG S-Cp Grw

VG Mid-Cap Val

ISHRS Russ 2000 Val

Direxion S&P 500 Bull 3X

Avantis U.S. Small Cap Value

ROYAL BANK OF CANADA

STOCKS | RBC Forecasts S&P 500 to Reach 7,900 Points in 12 Months

A technical signal in the S&P 500 indicates a potential pullback, with the SPDR S&P 500 ETF Trust (SPY) showing an overbought RSI of 78. Historically, such conditions have led to declines of at least 7% in most cases. Market internals are weakening, particularly in the semiconductor sector, and rising Treasury yields may pose further risks. The S&P 500's tech sector weighting has reached a record high, raising concerns about market sustainability.

- A technical signal in the S&P 500 indicates a potential for a significant pullback, as the SPDR S&P 500 ETF Trust reached an overbought RSI of 78, leading to a 1.2% drop the following day.  
- Historical analysis shows that after similar RSI readings, SPY typically experienced declines of at least 7% in the weeks that followed, with market internals showing deterioration and a notable drop in the semiconductor sector.  
- Additionally, there is a concerning divergence in index breadth and rising Treasury yields, suggesting potential headwinds for the tech sector, which has reached a record weighting in the S&P 500.

Investing

VanEck Semiconductor ETF

History suggests S&P 500 drops at least 7% when this happens

.IXIC

Stanley Warsh has taken over as chairman of the Federal Reserve amid a challenging macroeconomic environment marked by rising inflation, volatile bond markets, and declining stock prices. The S&P 500 and Nasdaq fell prior to his appointment, while the yield on 30-year US Treasury notes surpassed 5.1%. Warsh faces a dilemma: he must navigate rising yields that threaten economic stability without resorting to aggressive rate cuts that could exacerbate inflation. Current stock valuations are also concerning, indicating potential risks ahead.

- Warsh has taken over as the new chairman of the Federal Reserve amid significant macroeconomic challenges, including rising inflation and bond market volatility.  
- The bond market's rising yields indicate tightening financial conditions, which could affect consumers and businesses, while default rates on auto loans and credit cards are nearing crisis levels.  
- Warsh faces the dilemma of managing interest rates amid these pressures, with stock market valuations being overly optimistic despite underlying economic stress.

NASDAQ Composite Index

Dow Jones Industrial Average

Guggenheim DJIA Ave Div

Pro UltrPro Shrt Dow30

ProShares Ultra QQQ

ProShares Ultra Dow30 ETF

Vanguard Short Term Gov

iShares barclays 20+ Yr Treasury Bd

Pro UltrPro Dow30

SPDR Bloomberg 1-3 Month T-Bill ETF

First Trust NASDAQ-100 Equal Weighted

SPDR Djia

ISHRS Us Trsry Bd

iShares Barclays Short Treasury

iShares 7-10 Year Treasury Bond ETF

NVIDIA

NVIDIA Corporation

US Treasury bonds can no longer hold up, US stocks have started to fall, what should Walsh do?

Economist Justin Wolfers cautioned that ongoing Middle East tensions could pose political risks for Republicans ahead of the November midterm elections, as rising oil prices and Treasury yields pressure the U.S. economy. He questioned when Congress would intervene to protect their positions, noting that the conflict has led to significant oil supply losses and increased inflationary conditions.

benzinga_article

Shutterstock

Justin Wolfers Warns 'Mess' In Middle East Will Continue Through The Midterms, Wonders If Republicans In Congress Will 'Step In' To Save Their Jobs

Pro UltrPro Shrt S&Pro 500(SPXU.US)

Fed April Meeting Minutes Offer Color On Handling Rising Inflation Risks

Don’t Panic, Says Our Top Technical Strategist. The Charts Say an S&P Pullback from Here Could Be Constructive.

The AI Economy, Part 1: Looking Beyond The Facade

What bond investors should know about a Warsh-led Federal Reserve

Morgan Stanley warns bond rout could trigger equity correction, still sees S&P500 @ 8300

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

STOCKS | RBC Forecasts S&P 500 to Reach 7,900 Points in 12 Months

History suggests S&P 500 drops at least 7% when this happens

US Treasury bonds can no longer hold up, US stocks have started to fall, what should Walsh do?

Justin Wolfers Warns 'Mess' In Middle East Will Continue Through The Midterms, Wonders If Republicans In Congress Will 'Step In' To Save Their Jobs