Oil Fears Return

Oil prices climb again after Trump renews threats over a possible Hormuz shutdown.

Author

Ankit Sinha
May 18, 2026

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Market Snapshot

Market News

Markets Remember Rates Matter

Markets finally hit turbulence as rising bond yields and surging oil prices revived inflation fears, halting the AI-fueled stock rally. 

The S&P 500 fell 1.2% in its worst session since March, while chipmakers sank 4% as U.S. 10-year yields climbed above 4.5% and oil settled above $105 amid escalating Strait of Hormuz tensions.

Traders are increasingly betting the Federal Reserve may need to keep rates higher for longer, with strategists warning that yields approaching 5% could seriously pressure equity valuations, especially the crowded AI trade. Still, the S&P 500 notched a seventh straight weekly gain as resilient earnings and economic data continue supporting the broader market backdrop.

On the corporate front:

  • SpaceX is reportedly preparing to publicly file for its long-awaited IPO as soon as Wednesday.

  • Bill Ackman revealed a new stake in Microsoft Corporation after the recent pullback.

  • Donald Trump said AI safeguards and NVIDIA Corporation chips were discussed with Xi Jinping during talks in Beijing.

  • Boeing may have secured fresh China orders.

  • Alphabet Inc. raised a record ¥576.5 billion in Japan’s bond market to help fund the AI infrastructure arms race.

Peel Take: Markets finally remembered that interest rates still matter. Rising yields and surging oil prices were enough to interrupt the AI-fueled momentum, especially in crowded chip stocks that had been sprinting higher for months. Investors still believe in the AI story, but they’re just being reminded that even great stories get expensive at some point.

What's Ripe

Figma Inc. (FIG) 13.2%

  • FIG jumped 13% after the design-software firm delivered strong first-quarter earnings and raised its outlook, calming investor fears that artificial intelligence might start designing software companies out of existence. The results reassured markets that AI may still be more of a co-pilot than a replacement, at least for now.

  • Peel Take: Strong results from Figma suggest the market may have gotten ahead of itself on fears that generative AI would immediately commoditize software design. Instead, companies with sticky ecosystems, collaborative workflows, and strong user communities remain well-positioned to benefit from AI adoption rather than be disrupted by it.

DexCom Inc. (DXCM) 6.6%

  • DXCM climbed 6.6% after the glucose-monitor maker announced plans to add two independent directors to its board under an agreement with activist investor Elliott Investment Management.

  • Wall Street appeared to welcome the move, betting fresh oversight could help sharpen strategy and keep management’s blood pressure in check.

  • Peel Take: Elliott’s involvement signals growing shareholder pressure for stronger execution and governance in the medical-device sector. Activist investors are increasingly targeting healthcare companies where operational improvements, capital allocation changes, or strategic refocusing could unlock value, especially after periods of underperformance.

What's Rotten

Coinbase Global Inc. (COIN) 7.8%

  • COIN fell 7.8%, making it the worst performer in the S&P 500, while Robinhood Markets dropped 4.4% and Strategy slid 5.1%.

  • The pullback came just a day after cr*pto-linked stocks surged on optimism surrounding the Clarity Act. This proposed bill would hand oversight of most cr*pto trading to the Commodity Futures Trading Commission. Apparently, cr*pto investors remembered that regulatory clarity still doesn’t guarantee price stability.

  • Peel Take: Despite Friday’s selloff, the Senate committee’s advancement of the Clarity Act marks another major step toward mainstream regulatory acceptance for cr*pto markets. Clearer rules could ultimately benefit large platforms like Coinbase and Robinhood by reducing legal uncertainty and encouraging broader institutional participation, even if near-term trading in cr*pto-related stocks remains highly sentiment-driven.

Ford Motor Co. (F) 7.5%

  • Ford sank 7.5%, giving back gains from a two-day rally sparked by excitement around “Ford Energy,” the automaker’s new push into battery energy storage systems for utilities, data centers, and industrial customers.

  • Investors initially cheered the idea of Ford becoming part carmaker, part power company, especially after Morgan Stanley analysts backed the strategy, but Friday’s selloff suggested the market may be cooling on the hype.

  • Peel Take: Ford’s energy-storage pivot highlights how traditional automakers are increasingly trying to reposition themselves as broader electrification and infrastructure plays rather than just vehicle manufacturers.

🧠 Technical Trip

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🌟 WSO Academy Q1 Update

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🦈 Deal Dispatch

M&A, IPOs, And Other Notable Transactions

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Banana Brain Teaser

Previous

One hour after Yolanda started walking from X to Y, a distance of 45 miles, Bob started walking along the same road from Y to X. If Yolanda’s walking rate was 3 miles per hour and Bob’s was 4 miles per hour, how many miles had Bob walked when they met?

Answer: 24

Today

A researcher plans to identify each participant in a certain medical experiment with a code consisting of either a single letter or a pair of distinct letters written in alphabetical order. What is the least number of letters that can be used if there are 12 participants, and each participant is to receive a different code?

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