Equities Fall, Yields Surge Intraday Amid Inflation Concerns; Oil Jumps

02:35 PM EDT, 05/15/2026 (MT Newswires) -- US benchmark equity indexes were lower intraday as Treasury yields jumped amid inflation concerns, while oil prices moved higher on the back of renewed Middle East worries.

The Nasdaq Composite and the Dow Jones Industrial Average were down 0.8% each at 26,412.7 and 49,658.24, respectively, after midday Friday. The S&P 500 fell 0.7% to 7,448.3. The Nasdaq and S&P 500 hit fresh record highs in the previous session.

Barring energy, all sectors were in the red intraday Friday, led by materials' 2.5% drop.

US Treasury yields surged, with the 10-year rate up 13.2 basis points at 4.59% and the two-year rate rising 8.7 basis points to 4.08%.

"The sustained back-up in long-term yields has finally broken the preternatural serenity in equities, which saw the S&P 500 crack the 7,500 level for the first time on Thursday," BMO said in a report Friday. "A series of increasingly problematic US inflation readings for April was capped by a late-week run-up in oil prices to nearly $105, and aggravated by mounting fiscal concerns in some major economies."

Recently, official data showed that US producer prices in April rose at the fastest pace in four years, while annual consumer inflation accelerated to the fastest pace in almost three years.

West Texas Intermediate crude was up 4.2% at $105.37 a barrel intraday, while Brent climbed 3.4% to $109.28.

US President Donald Trump said he is losing patience with Iran, CNBC reported, citing Trump's interview to Fox News that aired late Thursday. "They should make a deal," he said, according to the report.

Trump reportedly concluded his two-day visit to Beijing Friday after holding policy discussions with his Chinese counterpart, Xi Jinping, on trade, tariffs and technology, among other matters. In a pre-recorded interview with Fox News, Trump reportedly said China has agreed to purchase oil from the US.

Beijing hasn't confirmed the energy purchases, according to the report.

Trump said he is considering lifting sanctions on Chinese firms buying Iranian oil, CNN reported. "I'm going to make a decision over the next few days. We did talk about that," he reportedly said.

In company news, Bill Ackman said his Pershing Square hedge fund has established a new position in Microsoft (MSFT) , noting that the technology giant's stock "offers analogous and compelling long-term value at today's valuation."

The billionaire investor has sold his long-owned investment in Alphabet (GOOG, GOOGL), Reuters reported.

Microsoft (MSFT) shares were up 4.4% intraday, the second-biggest gainer on the Dow. Alphabet's class A and C shares fell 0.9% each.

In economic news, US industrial production rebounded more than projected in April, buoyed the manufacturing and utilities categories, Federal Reserve data showed.

"The winners and losers in the latest report are likely to persist over the balance of 2026," Oxford Economics said in a note. "Besides supportive fiscal policy, the (artificial intelligence) buildout will continue to lift production of computers and electronics, while an inventory restocking cycle will support new orders growth for factories."

New York manufacturing activity grew at the fastest pace in more than four years this month amid robust new orders, the New York Fed reported.

Gold was down 2.6% at $4,564.80 per troy ounce, while silver slid 9.1% to $77.58 per ounce.

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