U.S. Stock Futures Decline as Treasury Yields Rise
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 18 2026
0mins
Source: Newsfilter
- Yield Rise Impacts Market: The benchmark 10-year Treasury yield peaked at 4.631%, the highest since February 2025, before easing to 4.597%, undermining investor confidence in equity markets, particularly in growth and tech sectors.
- Surging Oil Prices Heighten Concerns: Brent crude futures rose to $110.21 per barrel as efforts to end the Iran war stalled, raising fears that elevated borrowing costs could persist, thereby increasing pressure on equity valuations.
- Fed Rate Hike Expectations Increase: Traders are now pricing in over a 40% chance of a Federal Reserve interest rate hike in January, driven by last week's hotter-than-expected inflation readings, intensifying market anxiety regarding future monetary policy.
- Corporate Earnings as a Key Focus: Nvidia and Walmart are set to report earnings this week, with expectations high for Nvidia to continue its 36% rise since March, while Walmart's results will provide insights into how U.S. consumers are coping with rising energy prices and broader inflation pressures.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy NVDA?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 218.660
Low
200.00
Averages
264.97
High
352.00
Current: 218.660
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is an artificial intelligence (AI) infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. Its segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing and networking platforms and AI solutions and software, and automotive platforms and autonomous and electric vehicle solutions, including software. The Graphics segment includes GeForce GPUs for gaming and personal computers (PCs), and Quadro/NVIDIA RTX GPUs for enterprise workstation graphics. Its technology stack includes the foundational NVIDIA CUDA development platform that runs on all NVIDIA GPUs, as well as hundreds of domain-specific software libraries, frameworks, algorithms, software development kits (SDKs), and application programming interfaces (APIs). Its platforms address four markets, which include Data Center, Gaming, Professional Visualization, and Automotive.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Anthropic Plans Initial Public Offering Amid AI Boom
- IPO Filing: Anthropic confidentially filed for an IPO with the SEC on June 1, indicating its rapid growth in the AI sector and positioning itself as a potential trillion-dollar company, likely to attract significant investor interest.
- Funding Background: Following a $65 billion Series H funding round, Anthropic's valuation reached $965 billion, surpassing OpenAI's $852 billion, reflecting strong competitive positioning and investor confidence in the AI market.
- Profitability Outlook: Anthropic expects to achieve nearly $50 billion in annualized revenue by the end of June and to turn an operating profit in the current quarter, making its IPO valuation potentially more attractive with a 20x forward revenue multiple compared to OpenAI's 40x.
- Market Sentiment: There is considerable anticipation for Anthropic's IPO, with investors assigning a 53% chance that its market cap will exceed $1.8 trillion on the first day of trading, indicating optimistic expectations for its future performance.
See More
Amazon Shares Drop 3%, AI Investment Outlook Raises Concerns
- Cloud Computing Growth: Amazon Web Services (AWS) experienced a 28% year-over-year growth in Q1 2026, reaching $37.6 billion, driven by strong demand for computing power from AI model training, further solidifying Amazon's leadership in the cloud services market.
- Advertising Revenue Surge: Amazon's advertising revenue rose 24% to $17.2 billion in Q1, making it the second-largest player in digital advertising after Alphabet and Meta, indicating the high-profit potential of its advertising business is gradually being realized.
- Retail Profitability Improvement: North American retail operating income jumped from $5.8 billion to $8.3 billion year-over-year, thanks to faster delivery and a leaner warehouse network, pushing the overall operating margin to a record 13.1%, showing improved profitability in Amazon's retail sector.
- Capital Expenditure Pressure: Despite strong performance across various segments, Amazon's capital expenditures reached $44.2 billion in Q1, with expectations of around $200 billion in 2026, putting pressure on the company's free cash flow, which fell to about $1.2 billion over the past 12 months, necessitating careful assessment of future investment returns.
See More
Semiconductor Stocks Hit Hard Amid Broadcom's Disappointing Report
- Strong Performance by AMD: In Q1 2026, AMD's revenue rose 38% year-over-year to $10.3 billion, with the data center segment surging 57%, highlighting its robust execution in the artificial intelligence sector and becoming the main revenue driver.
- Future Growth Expectations: AMD projects current-quarter revenue of about $11.2 billion, implying approximately 46% year-over-year growth, and plans to launch its next-generation Instinct MI450 accelerators in the second half of the year, further propelling rapid growth in its data center business.
- Market Sentiment Volatility: Semiconductor stocks faced a broad sell-off this week, triggered by Broadcom's disappointing earnings report, which pressured the entire sector, particularly companies like Micron and Marvell that had recently performed well.
- Valuation Risks: With a price-to-earnings ratio exceeding 100, AMD's stock is highly valued, leaving little room for disappointment; any negative news could lead to further declines, especially as its PC and gaming segments face rising cost pressures.
See More
Nvidia's Market Value Surpasses $5 Trillion
- Significant Revenue Growth: Nvidia's latest quarter saw an 85% year-over-year revenue increase, highlighting strong demand in the AI chip market and further solidifying its position as the world's most valuable company.
- Competitors Closing In: Alphabet's market capitalization stands at approximately $4.45 trillion, trailing Nvidia but showing potential threats as its cloud service revenue grew 63% year-over-year, indicating strong growth momentum.
- Apple's Strong Performance: Apple reported a 17% year-over-year revenue increase to $111.2 billion in its latest fiscal quarter, with iPhone sales up 22%, suggesting sustained strength in the smartphone market that could drive future market value growth.
- Microsoft's Cloud Growth: Microsoft achieved an 18% revenue increase to $82.9 billion in its third fiscal quarter, with Azure and other cloud services growing 40%, and its AI business reaching a $37 billion annual revenue run rate, showcasing its potential in the AI sector despite a market cap of around $3.1 trillion.
See More
GitLab Reports Strong Revenue Growth Amid Workforce Cuts
- Significant Revenue Growth: GitLab reported a 23% year-over-year increase in fiscal Q1 revenue, reaching $264.2 million, exceeding the guidance of $253 million to $255 million, indicating strong growth within its customer base.
- Strong Customer Expansion: The company achieved a 30% growth in new customer acquisition, with a dollar-based net retention rate of 117%, demonstrating solid revenue growth from existing customers, particularly in the enterprise segment.
- Optimistic Future Outlook: GitLab raised its fiscal 2027 revenue guidance to between $1.112 billion and $1.118 billion, projecting a growth rate of 16% to 17%, while also increasing its adjusted EPS forecast, reflecting management's confidence in future performance.
- Organizational Restructuring: The company announced a 14% workforce reduction and exit from 22 countries, yet plans to increase the number of sales representatives, expecting a positive impact on sales performance in the second half of the year, indicating a strategic focus on operational efficiency while expanding market reach.
See More
Solana: The Next Potential Star of the Crypto Bull Run
- Market Performance Analysis: As of June 2, the total cryptocurrency market cap stands at $2.5 trillion, having fallen nearly 30% from last year's peak of $4.3 trillion, indicating significant market volatility and uncertainty, although history suggests a potential for price recovery.
- Growth Potential of Solana: With a market cap of approximately $46 billion, representing about 20% of Ethereum's, Solana has surged over 160% since June 2021, demonstrating its strong survival capabilities and growth potential in a competitive landscape.
- Technological Advantages and Use Cases: Solana's near-instant transaction settlement and minimal fees position it as a formidable competitor to traditional payment processors, making it ideal for high-volume applications like payments and AI agents, further driving the expansion of its ecosystem.
- Stablecoin Partnerships and Market Position: Solana has established multiple stablecoin partnerships with traditional financial firms, such as Western Union building its stablecoin on Solana, which not only strengthens its market position but also lays the groundwork for future mainstream adoption.
See More
Anthropic Plans Initial Public Offering Amid AI Boom
- IPO Filing: Anthropic confidentially filed for an IPO with the SEC on June 1, indicating its rapid growth in the AI sector and positioning itself as a potential trillion-dollar company, likely to attract significant investor interest.
- Funding Background: Following a $65 billion Series H funding round, Anthropic's valuation reached $965 billion, surpassing OpenAI's $852 billion, reflecting strong competitive positioning and investor confidence in the AI market.
- Profitability Outlook: Anthropic expects to achieve nearly $50 billion in annualized revenue by the end of June and to turn an operating profit in the current quarter, making its IPO valuation potentially more attractive with a 20x forward revenue multiple compared to OpenAI's 40x.
- Market Sentiment: There is considerable anticipation for Anthropic's IPO, with investors assigning a 53% chance that its market cap will exceed $1.8 trillion on the first day of trading, indicating optimistic expectations for its future performance.
See More
Amazon Shares Drop 3%, AI Investment Outlook Raises Concerns
- Cloud Computing Growth: Amazon Web Services (AWS) experienced a 28% year-over-year growth in Q1 2026, reaching $37.6 billion, driven by strong demand for computing power from AI model training, further solidifying Amazon's leadership in the cloud services market.
- Advertising Revenue Surge: Amazon's advertising revenue rose 24% to $17.2 billion in Q1, making it the second-largest player in digital advertising after Alphabet and Meta, indicating the high-profit potential of its advertising business is gradually being realized.
- Retail Profitability Improvement: North American retail operating income jumped from $5.8 billion to $8.3 billion year-over-year, thanks to faster delivery and a leaner warehouse network, pushing the overall operating margin to a record 13.1%, showing improved profitability in Amazon's retail sector.
- Capital Expenditure Pressure: Despite strong performance across various segments, Amazon's capital expenditures reached $44.2 billion in Q1, with expectations of around $200 billion in 2026, putting pressure on the company's free cash flow, which fell to about $1.2 billion over the past 12 months, necessitating careful assessment of future investment returns.
See More
Semiconductor Stocks Hit Hard Amid Broadcom's Disappointing Report
- Strong Performance by AMD: In Q1 2026, AMD's revenue rose 38% year-over-year to $10.3 billion, with the data center segment surging 57%, highlighting its robust execution in the artificial intelligence sector and becoming the main revenue driver.
- Future Growth Expectations: AMD projects current-quarter revenue of about $11.2 billion, implying approximately 46% year-over-year growth, and plans to launch its next-generation Instinct MI450 accelerators in the second half of the year, further propelling rapid growth in its data center business.
- Market Sentiment Volatility: Semiconductor stocks faced a broad sell-off this week, triggered by Broadcom's disappointing earnings report, which pressured the entire sector, particularly companies like Micron and Marvell that had recently performed well.
- Valuation Risks: With a price-to-earnings ratio exceeding 100, AMD's stock is highly valued, leaving little room for disappointment; any negative news could lead to further declines, especially as its PC and gaming segments face rising cost pressures.
See More
Nvidia's Market Value Surpasses $5 Trillion
- Significant Revenue Growth: Nvidia's latest quarter saw an 85% year-over-year revenue increase, highlighting strong demand in the AI chip market and further solidifying its position as the world's most valuable company.
- Competitors Closing In: Alphabet's market capitalization stands at approximately $4.45 trillion, trailing Nvidia but showing potential threats as its cloud service revenue grew 63% year-over-year, indicating strong growth momentum.
- Apple's Strong Performance: Apple reported a 17% year-over-year revenue increase to $111.2 billion in its latest fiscal quarter, with iPhone sales up 22%, suggesting sustained strength in the smartphone market that could drive future market value growth.
- Microsoft's Cloud Growth: Microsoft achieved an 18% revenue increase to $82.9 billion in its third fiscal quarter, with Azure and other cloud services growing 40%, and its AI business reaching a $37 billion annual revenue run rate, showcasing its potential in the AI sector despite a market cap of around $3.1 trillion.
See More
GitLab Reports Strong Revenue Growth Amid Workforce Cuts
- Significant Revenue Growth: GitLab reported a 23% year-over-year increase in fiscal Q1 revenue, reaching $264.2 million, exceeding the guidance of $253 million to $255 million, indicating strong growth within its customer base.
- Strong Customer Expansion: The company achieved a 30% growth in new customer acquisition, with a dollar-based net retention rate of 117%, demonstrating solid revenue growth from existing customers, particularly in the enterprise segment.
- Optimistic Future Outlook: GitLab raised its fiscal 2027 revenue guidance to between $1.112 billion and $1.118 billion, projecting a growth rate of 16% to 17%, while also increasing its adjusted EPS forecast, reflecting management's confidence in future performance.
- Organizational Restructuring: The company announced a 14% workforce reduction and exit from 22 countries, yet plans to increase the number of sales representatives, expecting a positive impact on sales performance in the second half of the year, indicating a strategic focus on operational efficiency while expanding market reach.
See More
Solana: The Next Potential Star of the Crypto Bull Run
- Market Performance Analysis: As of June 2, the total cryptocurrency market cap stands at $2.5 trillion, having fallen nearly 30% from last year's peak of $4.3 trillion, indicating significant market volatility and uncertainty, although history suggests a potential for price recovery.
- Growth Potential of Solana: With a market cap of approximately $46 billion, representing about 20% of Ethereum's, Solana has surged over 160% since June 2021, demonstrating its strong survival capabilities and growth potential in a competitive landscape.
- Technological Advantages and Use Cases: Solana's near-instant transaction settlement and minimal fees position it as a formidable competitor to traditional payment processors, making it ideal for high-volume applications like payments and AI agents, further driving the expansion of its ecosystem.
- Stablecoin Partnerships and Market Position: Solana has established multiple stablecoin partnerships with traditional financial firms, such as Western Union building its stablecoin on Solana, which not only strengthens its market position but also lays the groundwork for future mainstream adoption.
See More
