NASDAQ Analysis for May 18, 2026
Since early this morning, the market has seen a decline in Treasuries, with U.S. government bond prices dropping sharply while yields are surging across all key maturities, including the 2-year, 5-year, 10-year, and even 30-year notes.
Markets are already pricing in a scenario of accelerating inflation, hawkish rhetoric from the Fed, and even a potential rate hike before the end of the year—contrary to previous expectations.
Trump is betting on Warsh, banking on him to push for rate cuts. However, analysts are raising alarms: cutting rates against a backdrop of accelerating inflation is playing with fire. Equities have already started to react to this sentiment.
Last week, the NASDAQ entered a bearish margin cycle with a potential target in the 28,500 area. However, I believe we must account for a possible correction toward the 1/4 margin zone levels from the current lows, with an eye on balancing positions in the 29,220 area.
