May 18, 2026

Weekly Update 5/18/2026

Your Weekly Update for Monday, May 18, 2026.

Beacon Rock Wealth Advisors is a dba of BR Capital, Inc. It is a financial planning and registered investment advisory firm in Camas, Washington. We are always available to answer your questions. Give us a call at (360) 735-1900 or send an email.

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Have a great week!

Bill Roller
NMLS #107972
CHARTERED FINANCIAL ANALYST
CERTIFIED FINANCIAL PLANNERTM
CHARTERED MARKET TECHNICIAN
bill.roller@beaconrwa.com

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Summary

Markets were FLATLY MIXED last week. The Dow Jones Industrial Average was DOWN 0.17% to 49,526.17 while the S&P500 ended UP 0.13% to 7,408.50. The Nasdaq Composite FELL 0.08% to 26,225.15. The annual yield on the 30-year Treasury ROSE 18.1 basis point(s) to 5.128%.

Last Week

  1. Closing Market Summary: Stocks pull back from record highs amid inflation concerns
  2. Stocks ended a record-setting week on a lower note, with the S&P 500 (-1.2%), Nasdaq Composite (-1.5%), and DJIA (-1.1%) retreating from recent record highs amid a surge in oil prices and Treasury yields.
  3. Crude oil futures settled today’s session $4.33 higher (+4.3%) at $105.49 per barrel amid fears that the U.S. could re-engage in military operations against Iran after the summit between President Trump and President Xi failed to produce any meaningful policy changes.
  4. The lack of surprises from the summit also included no mention of NVIDIA (NVDA 225.32, -10.42, -4.42%) H200 chip sales to China, while China’s pledge to purchase 200 Boeing (BA 220.49, -8.72, -3.80%) jets was largely in line with expectations.
  5. More important than any individual stock move, though, was the upward pressure on Treasuries that sent yields to fresh highs for the year amid renewed inflation concerns tied to the rise in oil prices. The 2-year note yield settled up nine basis points to 4.08%, while the 10-year note yield settled up 13 basis points to 4.60%.
  6. Higher interest rates reduce the present value of future cash flows, and the market has clearly been placing a significant premium on the long-term earnings potential tied to the AI buildout.
  7. The PHLX Semiconductor Index finished 4.0% lower today, ending the week with a loss after several choppy sessions. Corning (GLW 191.92, -16.36, -7.85%) and Micron (MU 724.66, -51.35, -6.62%) were among the worst-performing components of the information technology sector (-1.6%).
  8. However, the sector was supported somewhat by relative strength in software stocks, with the iShares GS Software ETF finishing 1.3% higher. Microsoft (MSFT 421.92, +12.49, +3.05%) was a “Magnificent Seven” standout after CNBC reported that Pershing Square has built a position in the company.
  9. Meanwhile, Tesla (TSLA 422.04, -21.26, -4.79%) was a notable laggard, which pressured the consumer discretionary sector (-1.8%).
  10. The sector also faced weakness across its homebuilder components due to rising interest rates, which weighed on building products names in the industrials sector (-1.8%) as well.
  11. The rate-sensitive utilities (-2.4%) and real estate (-1.6%) sectors also underperformed, while the materials sector (-2.7%) finished with the widest loss amid broad weakness in metals and mining names.
  12. Only the energy sector (+2.3%) managed to finish higher amid the surge in oil prices today.
  13. Outside of the S&P 500, the Russell 2000 (-2.4%) and S&P Mid Cap 400 (-1.7%) underperformed amid the broad risk-off tone and renewed pressure on economically-sensitive and rate-sensitive stocks.
  14. Overall, Friday’s session was a reminder that the macro backdrop remains a meaningful headwind for equities even after a strong AI-fueled earnings season helped drive the market to repeated record highs in recent weeks. The market entered the year expecting roughly two Fed rate cuts in 2026, but persistent inflation pressures and the recent surge in oil prices have now shifted expectations toward the possibility of a rate hike next January. The question now is whether investors will once again step in to buy today’s weakness across tech and semiconductor stocks, or if rising yields and inflation concerns begin to weigh more meaningfully on the market’s momentum.
  15. Nasdaq Composite: +12.8% YTD
  16. Russell 2000: +12.6% YTD
  17. S&P Mid Cap 400: +9.2% YTD
  18. S&P 500: +8.2% YTD
  19. DJIA: +3.0% YTD

Reviewing Friday’s data:

  1. May Empire State Manufacturing 19.6 (Briefing.com consensus 6.2); Prior 11.0
  2. April Industrial Production 0.7% (Briefing.com consensus 0.2%); Prior was revised to -0.3% from -0.5%, April Capacity Utilization 76.1% (Briefing.com consensus 75.7%); Prior 75.7%. The key takeaway from the report is that it was underpinned by solid manufacturing output that was led by the production of durables. Excluding motor vehicles and parts, manufacturing output was up 0.3% month-over-month.

This Week

  1. The S&P 500 futures are 0.1% below fair value; the Nasdaq 100 futures are in-line with fair value; and the DJIA futures are 0.3% below fair value
  2. Key factors driving the futures market:
  3. Higher Treasury yields create headwind for risk-on positioning
  4. Unconfirmed chatter that U.S. is offering temporary waiver on Iran oil sanctions
  5. Concerns about market being overextended and due for a pullback
  6. Key economic data for April out of China was weaker than expected
  7. President Trump is waiting for a new proposal from Iranian mediators. President Trump will hold a White House Situation Room meeting on Tuesday on Iran as he considers resuming strikes. Axios
  8. President Trump says “the clock is ticking” and that Iran better get moving or there won’t be anything left
  9. Cuba has acquired 300 military drones and is discussing plans to attack U.S. military vessels and possibly Key West, FL. Axios
  10. Iran says Strait of Hormuz transit will normalize once conflict with U.S. & Israel is over, but the two sides are not close to a deal. Chinese Foreign Minister Wang Yi says the Strait of Hormuz should be opened as soon as possible. Bloomberg
  11. The White House released a summary of agreements made between Presidents Trump and Xi, including an agreement for cooperation on rare earth elements.
  12. China says reducing tariffs were part of trade agreements, but the U.S. did not confirm that. CNBC
  13. British Prime Minister Starmer is reportedly planning his exit, though he has not officially announced his resignation yet
  14. House Transportation and Infrastructure Committee will vote on surface transportation legislation this week. Bloomberg
  15. IEA Chief Fatih Birol says commercial oil inventories are depleting, according to Reuters
  16. China’s April Retail Sales were up 0.2% yr/yr (expected 2.0%; last 1.7%). April Industrial Production rose 4.1% yr/yr (expected 6.0%; last 5.7%), increasing 5.6% yr/yr (last 6.1%). April Fixed Asset Investment was down 1.6% yr/yr (expected 1.7%; last 1.7%)
  17. Baidu (BIDU)beats by RMB 0.52, beats on revs
  18. Bio-Rad Laboratories (BIO): Elliott Investment Management builds stake in company. WSJ
  19. Dominion Energy (D): being acquired by NextEra Energy (NEE)in all-stock transaction
  20. Intel (INTC): President Trump an interview says he should have asked for a larger stake in Intel, according to Fortune
  21. Regeneron Pharma (REGN)phase 3 trial of Fianlimab combination in first-line unresectable or metastatic melanoma did not meet primary endpoint
  22. SpaceX could file for IPO as soon as Wednesday. Bloomberg
  23. Brokerage research calls of note:
  24. Upgrades: ADP, AMH, BALL, GOOS, CRCL, CCK, FFIV, INVH, LRCX, REPYY, SHEL, VFC, VIK, WLK, ZS
  25. Downgrades: AMAT, CRWV, INTR, NBIS, OTLK, PBA, REGN
  26. WTI crude futures -0.2% to $105.26/bbl; nat gas futures +2.8% to $3.04/mmbtu; copper futures -0.5% to $6.27/lb; gold futures -0.1% to $4557.50/toz; silver futures -0.7% to $76.97/toz
  27. 2-yr note yield -1 bp to 4.07% and 10-yr note yield -1 bp to 4.59%
  28. The U.S. Dollar Index -0.2% to 99.13
  29. Today’s economic data: May NAHB Housing Market Index at 10:00 a.m. ET; March Net Long-Term TIC Flows at 4:00 p.m. ET

Mortgage Rates

“Mortgage rates ticked down this week, averaging 6.36%,” said Sam Khater, Freddie Mac’s Chief Economist. “While purchase demand is softening, it remains above this time last year. Recent data also shows existing-home sales modestly edging up.”

The 30-year FRM averaged 6.36% as of May 14, 2026, slightly down from last week when it averaged 6.37%. A year ago at this time, the 30-year FRM averaged 6.81%.

The 15-year FRM averaged 5.71%, slightly down from last week when it averaged 5.72%. A year ago at this time, the 15-year FRM averaged 5.92%.

Mortgage Rates

Selected Cryptocurrencies

 

Symbol Name Price 24h % 7d % Market Cap Volume(24h)
BTC Bitcoin $77,330.40 -1.36% -4.82% $1,548,984,836,244 $29,997,286,621
ETH Ethereum $2,145.29 -2.19% -8.16% $258,905,935,733 $14,532,589,481
BNB BNB $643.02 -1.92% -1.87% $86,670,701,709 $1,271,833,796
XRP XRP $1.39 -2.11% -4.63% $86,165,235,662 $1,970,854,262
SOL Solana $85.24 -1.92% -10.44% $49,292,964,604 $3,429,711,190
TRX TRON $0.36 -0.09% 1.03% $33,764,284,404 $721,146,503
DOGE Dogecoin $0.11 -5.77% -4.04% $16,273,982,933 $1,467,585,981
HYPE Hyperliquid $45.58 6.12% 10.43% $11,596,833,834 $712,422,221
LEO UNUS SED LEO $10.06 -0.32% -1.25% $9,267,032,000 $646,848
ADA Cardano $0.25 -2.20% -10.01% $9,094,378,269 $439,315,071
ZEC Zcash $525.12 2.15% -7.77% $8,759,787,137 $638,812,966
BCH Bitcoin Cash $373.19 -9.87% -17.14% $7,477,364,562 $544,887,163
XMR Monero $382.98 -2.77% -6.70% $7,064,742,770 $100,662,250
LINK Chainlink $9.55 -2.80% -9.46% $6,944,285,087 $594,363,507
CC Canton $0.15 -0.47% -0.33% $5,924,726,486 $20,227,807
TON Toncoin $2.02 3.70% -11.46% $5,461,481,307 $317,435,899
DAI Dai $1.00 0.00% 0.02% $5,364,210,456 $64,560,754
XLM Stellar $0.15 -2.52% -11.67% $4,965,603,893 $120,911,292

Data as of 5:154 AM PDT, Monday, May 18, 2026. Source: https://coinmarketcap.com

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Sources: Bill Roller, BR Capital, Inc. dba Beacon Rock Wealth Advisors American Association for Individual Investors (AAII), Associated Press, Barclays Capital, Bloomberg, Briefing.com, Citigroup, Deutsche Bank, FactSet, Financial Times, Goldman Sachs, JPMorgan Asset Management, MarketfieldAsset Management, Morgan Stanley, MSCI, Morningstar, Northern Trust, Oppenheimer Funds, PIMCO, Standard & Poor’s, StockCharts.com, The Conference Board, Thomson Reuters, T. Rowe Price, U.S. Bureau of Economic Analysis, U.S. Federal Reserve, Wall Street Journal, The Washington Post. Index performance is shown as total return, which includes dividends, with the exception of MSCI-EM, which is quoted as price return/excluding dividends. Performance for the MSCI-EAFE and MSCI-EM indexes is quoted in U.S. Dollar investor terms.

The information above has been obtained from sources considered reliable, but no representation is made as to its completeness, accuracy or timeliness. All information and opinions expressed are subject to change without notice. Information provided in this report is not intended to be, and should not be construed as, investment, legal or tax advice; and does not constitute an offer, or a solicitation of any offer, to buy or sell any security, investment or other product BR Capital, Inc. dba Beacon Rock Wealth Advisors  is a registered investment advisor.

Notes key: (+) positive/encouraging development, (0) neutral/inconclusive/no net effect, (-) negative/discouraging development.

All content Copyright BR Capital, Inc.

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