Wall Street Falls After Trump-Xi Meeting, Intel and Nvidia Shares Plummet
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NEW YORK, KOMPAS.com - US stock markets, also known as Wall Street, closed lower on Friday (16/5/2026) local time, triggered by profit-taking in technology stocks and a surge in US Treasury yields.
The decline occurred after a meeting between US President Donald Trump and Chinese President Xi Jinping ended without producing any major policy breakthroughs expected by the market.
The S&P 500 index fell 1.24 percent to 7,408.50, while the Nasdaq Composite fell 1.54 percent to 26,225.14. The Dow Jones Industrial Average fell 537.29 points, or 1.07 percent, to 49,526.17.
Intel shares fell more than 6 percent. Advanced Micro Devices (AMD) fell 5.7 percent and Micron Technology fell 6.6 percent. Nvidia also corrected 4.4 percent.
Meanwhile, Cerebras Systems, which had jumped 68 percent on its debut on the Nasdaq the previous day, plunged 10 percent.
“This group of stocks has experienced very unsustainable gains in recent weeks and remains vulnerable to profit-taking, whatever the headlines,” said Vital Knowledge analyst Adam Crisafulli.
Amid pressure on the technology sector, Microsoft shares actually rose 3 percent after billionaire investor Bill Ackman said Pershing Square had taken an investment position in the company.
On the other hand, the surge in US Treasury yields also put pressure on the stock market. The yield on 30-year Treasury bonds even broke the 5.1 percent level.
The market is concerned that US inflation will rise again as oil prices rise due to conflict in the Middle East. This could keep interest rates high for longer and burden high-growth stocks.
World oil prices also jumped on Friday. US West Texas Intermediate (WTI) crude oil rose 4.2 percent to $105.42 per barrel, while Brent rose 3.35 percent to $109.26 per barrel.
The rise in oil prices occurred after Trump told Fox News that he would “not be more patient” with Iran and stressed that “they should make a deal.”
Investors were also disappointed that the Trump and Xi Jinping meeting did not produce a new major agreement.
According to a US government summary, the two leaders only agreed that the Strait of Hormuz must remain open to maintain the smooth flow of global energy trade.
“The few headlines that emerged from the meeting, such as the Boeing order, were not very impressive,” said Crisafulli.