Quick overview

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U.S. equities traded with notable volatility on Monday, May 18, as investors balanced easing pressure in global bond markets against renewed geopolitical uncertainty between the United States and Iran, while also positioning ahead of upcoming earnings from Nvidia.

The Nasdaq led losses as technology stocks came under pressure. In this context, the Dow Jones Industrial Average rose 0.32% to 49,686.12 points, the S&P 500 slipped 0.08% to 7,402.81 points, and the Nasdaq Composite fell 0.51% to 26,090.73 points.

Trump warns Iran as diplomatic deadlock persists

Geopolitical tensions dominated early trading after new drone incidents in the Gulf and continued stalemate in negotiations between Washington and Tehran.

President Donald Trump rejected Iran’s latest response to a U.S. peace proposal and warned that the current ceasefire was effectively on “life support.”

“Iran’s time is running out — they had better act fast or nothing will remain,” Trump wrote on Truth Social on Sunday.

Both sides remain far apart. The U.S. is demanding that Iran abandon its nuclear ambitions, surrender enriched uranium, and reopen strategic shipping routes such as the Strait of Hormuz. Iran, meanwhile, is calling for a full ceasefire, compensation for war damages, and an end to the U.S. naval blockade, while insisting on maintaining limited nuclear activity under international supervision.

Oil prices reflected the uncertainty, with Brent crude rising 1.5% to $110.87 per barrel.

Bond markets stabilize after sharp global selloff

Attention also shifted to fixed income markets, where a global bond selloff that accelerated last week showed signs of stabilizing.

The move had pushed yields sharply higher across major economies, driven by inflation data showing rising energy costs linked to the Middle East conflict and supply disruptions through the Strait of Hormuz. Investors increasingly priced in the risk of prolonged inflation and tighter monetary policy from central banks.

In U.S. markets, the 10-year Treasury yield rose to 4.604%, while the 30-year yield climbed to 5.138%, remaining near multi-year highs.