In the early morning of May 20, 2026 Beijing time, the three major U.S. stock indexes closed lower collectively, with the S&P 500 falling for the third consecutive day, and the Dow Jones Industrial Average and Nasdaq Composite Index falling by 0.65% and 0.84% respectively. The decline in U.S. stocks was mainly dragged down by the surge in U.S. Treasury yields. The 30-year U.S. Treasury yield broke through 5.19%, hitting a 20-year high. At the same time, investors’ concerns about accelerating inflation intensified. Traders expect the probability of the Federal Reserve raising interest rates by the end of 2026 to exceed 80%, and market sentiment tends to be cautious. The surge in Treasury yields has pushed up capital costs, suppressing stock valuations, especially for growth stocks such as technology stocks. Nvidia, a leading AI chip company, fell 0.77% ahead of its after-hours earnings release, while Google Class A shares fell 2.34% due to adjustments to AI subscription service prices. However, some chip stocks performed strongly, with Micron rising 2.52% after Citi sharply raised its target price. Economic data released recently also affected market sentiment. U.S. private sector employment increased, and the April pending home sales index rose 1.4% month-on-month, hitting a five-month high, indicating a certain recovery in the real estate market. However, the acceleration of inflation in April has become the focus of market attention, making investors worry that the Federal Reserve will maintain a hawkish monetary policy for a longer period. Industry insiders pointed out that the current U.S. stock market is facing dual pressures of high interest rates and high inflation. If inflation cannot be effectively controlled, the Federal Reserve may continue to raise interest rates, which will further suppress the stock market. Investors need to pay close attention to the upcoming inflation data and the Federal Reserve’s policy signals.