CNBC Business News Update - Market Close: Stocks Lower, Bond Yields Higher, 30 Year Treasury Yield Rises To 5.19% Highest Since 2007 5/19/26

Episode Date: May 19, 2026

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I'm Jessica Eddinger. CNBC, Wall Street opens Wednesday morning after a Tuesday pullback for stocks, while bond yields popped. The Dow was down 322 points, a half percent. Cisco shares let it lower. They were down almost 3%. The S&P 500 index lost 49 points. The NASDAQ was down 220 points. Shares of NVIDIA were down 3 quarters of a percent on Tuesday, and it's set to report quarterly results. Wednesday. Companies who shares hit fresh all-time highs Tuesday include Costco, Coca-Cola, Walmart, Philip Morris, Marathon Petroleum, Valero, Aflak, Allstate, and CrowdStrike. Investors dumped bonds Tuesday on fears that inflation's heating up. The yield on the 30-year treasury rose to 5.19%. That is a number. We haven't seen on the 30 years since before the great financial crisis almost 20 years ago. We started to see last week that the market had just run too far too fast. You look at what has driven the rally. The answer is earnings. And that is very different from the other kinds of momentum rallies we've seen in the past.

And that's the reason to me it's just a yellow flag and not a red flag. That's Goldman Sachs Ben Snyder on CNBC. And here's Vertus Investments, Joe Taranova on CNBC. What's happening right now is a reaction to what we're seeing in yields. But I also think be very careful believing that this is some major inflection point. I just think the market was over-extended. Mortgage rates on Tuesday hit their highest since last summer as they aim for 7% again. The average rate on the 30-year fix just rose 6.75% according to Mortgage News Daily.

That is the highest level since July 31st came after the sharp spike in rates at the start of the war. We're now higher than that. Now that move from the low of 599 to now 6.75 is a meaningful change in the housing affordability math. buyer putting down 20% on a $420,000 home, roughly the national median. Their monthly principal and interest payment has gone from $2,012 to $2,179, a difference of $167 and add up the rising oil prices, and that it's real money. That's CNBC's Diana Oleg. One of the biggest names on Wall Street reports quarterly results Wednesday,

chipmaker Nvidia, and its CEO, Jensen Wong, will talk to investors on the earnings call. Look, Invidia, that's what investors are focused on, because there's no better sense in terms of the foundation, the perch, for what's going on the AI revolution than Nivitian. I think what we're going to continue to see is the demand trends accelerating. We've seen that from our Asia checks. And physical AI hasn't even come. And that's why it's a get the popcorn out movement when the godfather speaks on Wednesday. That's wed Bush's Dan Ives on CNBC. Target also reporting results on Wednesday with Walmart releasing results on Thursday.

Here's the former Vice Chairman of Target. Jerry Storch on CNBC, now the CEO of Storch Advisors. A few people know this, but they started the same year, and even Kmart started that year in 1961, but their paths have been very, very different since then. Walmart's a behemoth now. They're way outperforming Target. The question for Target is, are we going to start to see a turnaround under their new CEO? There's a lot of whispers out there.

It's maybe one of the best quarters they've had in a while. On Wednesday's watch list, earnings are coming. from Nvidia and Target, as we mentioned, plus Hasbro, analog devices, and T.J. Max and Marshall's parent, TJX companies. We also get a look at the minutes of the last Fed meeting and what they're saying about interest rates. The NHL's conference finals begin Wednesday night. Jessica Eddinger, CNBC. I wake up every day with two missions. How do I make my bosses more money? How do I get some of it? And I'm not apologizing for that to anybody. Our can't miss conversation with E. ESPN Stephen A. Smith. Sign up for the CNBC Sport newsletter. Go to CNBC.com slash sport.