US Equity Markets Lower After Treasury Yield Hike, Chances of Policy Rate Increase, President Trump's Threat to Hit Iran Again

BY MT Newswires | TREASURY | 04:14 PM EDT

04:14 PM EDT, 05/19/2026 (MT Newswires) -- US equity indexes end lower on Tuesday after the 30-year treasury yield hit a near two-decade high, the chances of an interest rate hike increased and President Donald Trump threatened to resume strikes if Iran fails to reach a peace deal.

* President Trump warned strikes would resume on Iran in the coming days as part of the push for a deal to end the war, after he said he had just called off a US attack, Bloomberg reported.

* The probability of a 25 basis-point increase in US interest rates in December was at over 40% from 1% a month ago, according to the CME FedWatch tool Tuesday.

* Redbook US same-store sales rose by 8.1% from a year earlier in the week ended May 16 after a 9.6% year-over-year increase in the previous week.

* June West Texas Intermediate crude oil fell $0.07 to settle at $108.59 per barrel, while July Brent crude, the global benchmark, was last seen down $0.85 at $111.25.

* The Kroger (KR) shares were up about 3.4%, the biggest gainer on the S&P 500, after the company said it has been included among the 2026 Axios Harris Poll 100, an annual ranking of the most visible companies in the US.

* Estee Lauder (EL) remains in talks with Puig over a potential business combination, though there's no announcement to make yet, Reuters reported, citing Estee Lauder (EL) CEO Stephane de La Faverie. Estee Lauder (EL) shares were down 5.4%, the steepest decliner on the S&P 500.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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