Dow drops 537 points as Treasury yields, oil surge and Trump-Xi meeting disappoints

U.S. stocks fell sharply on May 15, 2026, as investors sold technology and semiconductor shares after a recent rally, while rising Treasury yields, higher oil prices and a lack of major breakthroughs from the Trump-Xi meeting fueled concerns over inflation and growth. The Dow Jones Industrial Average dropped 537.29 points, or 1.07%, to 49,526.17. The Nasdaq Composite fell 1.54% to 26,225.15, and the S&P 500 lost 1.24% to 7,408.50. The Philadelphia Semiconductor Index slid 4.02%, led by declines in Arm, AMD, Nvidia, Micron and TSMC’s ADR. The 30-year Treasury yield rose above 5.1%, its highest level in nearly a year. WTI crude jumped 4.2% to $105.42 a barrel, while Brent rose 3.35% to $109.26, as Middle East supply risks intensified. CME FedWatch pricing showed traders beginning to assign higher odds to a Federal Reserve rate increase by December 2026, rather than a cut.