Market Report, 2026-05-18

This week began with geopolitics once again at the center of market attention. The U.S.-Iran relationship and efforts toward a diplomatic resolution have not progressed at the pace global investors had expected. Despite efforts from both sides, the situation remains in a stalemate. Oil prices continued to trade at elevated levels, with Brent crude hovering near $109 per barrel.

Market leadership rotated away from AI-related names and into more traditionally defensive sectors. The Dow Jones Industrial Average, which has relatively limited AI exposure, rose 160 points to close at 49,686. The S&P 500, widely viewed as a more balanced index, finished the day slightly lower, down 0.07% to 7,403. The technology-heavy Nasdaq posted a loss of 0.45%, closing at 28,994. The technology sector ended the day down 1.08%, while energy, consumer staples, financials, and real estate each finished at least 1% higher.

The bond market stabilized after last week’s sharp surge in interest rates. The U.S. 5-year Treasury yield declined by 2 basis points to 4.24%, while the 10-year yield fell by 1 basis point to 4.59%. The 30-year Treasury yield remained near a nearly 19-year high at 5.13%. Gold also stabilized alongside bonds, holding near the 4,570 level.

The Homebuilder Confidence Index was the only notable economic data release today. It rebounded despite rising interest rates, though it remained low overall as affordability concerns continued to weigh on the housing outlook. Builders continued to cut prices and offer incentives in order to stay competitive and support sales.

Tomorrow, pending home sales data will provide another read on the real estate market. Adams Wealth Advisors will continue to monitor the market and bring you the latest developments.