Financial Markets                      05/19 15:33

   

   NEW YORK (AP) -- The U.S. stock market gave back more of its record-setting 
rally Tuesday after bond markets rattled by high inflation cranked up the 
pressure.

   The S&P 500 fell 0.7% for its third straight loss since setting its latest 
all-time high. The Dow Jones Industrial Average dropped 322 points, or 0.6%, 
and the Nasdaq composite sank 0.8%.

   The declines followed mixed moves for stock markets abroad, while oil prices 
eased in their latest yo-yo move. Falling technology stocks in Asia dragged 
South Korea's Kospi down 3.3%, but Germany's DAX returned 0.4%.

   Tech stocks are faltering following huge runs made because of excitement 
around artificial-intelligence technology, runs that critics said made them too 
expensive. The stumble comes as oil prices swing on uncertainty about how long 
the Iran war will keep the Strait of Hormuz closed for oil tankers. That in 
turn has pushed yields higher in bond markets, which is dragging on economies 
and pressuring all kinds of other investments.

   The wait is on, meanwhile, for Nvidia to report its latest quarterly 
results. The chip company is due to report on Wednesday, and it's routinely 
blown past analysts' expectations each quarter. Not only that, it's provided 
forecasts for future growth that have consistently topped Wall Street's.

   How it does could determine whether technology stocks and the larger U.S. 
stock market can maintain their rally. Nvidia fell 0.8% Tuesday and was one of 
the heaviest weights on the S&P 500 because of its immense size.

   "Every flow has its ebb," Rex Feng, Venu Krishna and other strategists at 
Barclays Capital wrote in a report. They said investors have been pumping more 
money than usual into U.S. stock funds, which helped fuel "the fastest rebound 
in decades; now the pendulum could swing backwards."

   Akamai Technologies dropped 6.3% for one of Wall Street's sharper losses 
after the cybersecurity and cloud computing company said it wants to raise $2.6 
billion through a convertible note offering.

   Home Depot rose 0.9% after flipping an early loss following its latest 
earnings report. Its profit and revenue edged past analysts' expectations, but 
an important measure for retailers that looks at performance for stores more 
than 1 year old came in below some analysts' expectations.

   CEO Ted Decker said Home Depot saw similar demand from its customers as it 
did throughout last year "despite greater consumer uncertainty and housing 
affordability pressure."

   So far, many big U.S. companies have been reporting stronger-than-expected 
profits for the latest quarter thanks in part to their customers continuing to 
spend in the face of high gasoline prices and other challenges. That's helped 
vault U.S. stock indexes to records, but disquiet in the bond market is 
threatening that.

   In the bond market, Treasury yields climbed further. The yield on the 
10-year Treasury rose to 4.66% from 4.61% late Monday and from less than 4% 
before the war with Iran began. That's a notable increase, and it's part of a 
worldwide climb that's making stock prices look even more expensive and 
threatening to slow the economy.

   Higher yields can drive up rates for mortgages and loans going to companies 
to build AI data centers, which has been a big source of growth for the economy.

   Yields rose even as oil prices eased. The price for a barrel of Brent crude 
slipped 0.7% to settle at $111.28, though it's still well above its $70 level 
from before the war with Iran.

   The average price for a gallon of gasoline rose again overnight to $4.53, 
according to the AAA motor club, or about 43% more than it cost last year at 
this time.

   All told, the S&P 500 fell 49.44 points to 7,353.61. The Dow Jones 
Industrial Average dropped 322.24 to 49,363.88, and the Nasdaq composite sank 
220.02 to 25,870.71.

   In stock markets abroad, London's FTSE 100 edged up 0.1% despite a 2.2% drop 
for Standard Chartered. The bank said Tuesday it plans to reduce over 7,800 
roles as it steps up artificial intelligence and automation uses. It's the 
latest big company to cite AI as one of the reasons for cutting jobs.

   ___

   AP Business Writers Yuri Kageyama, Matt Ott and Chan Ho-him contributed to 
this report.

   ---------

   itemid:fde4dcd17a3c02d884a947342e8e8f5e