By Callum Keown and Kit Norton
Stocks were falling Tuesday and the tech-led rally continued to lose momentum as government bonds sold off sharply. Investors also continued to monitor the situation in the Middle East.
These stocks were making moves:
Home Depot gained 0.7% after the home-improvement retailer posted first-quarter earnings that beat analysts' estimates and revenue rose 4.8% to $41.8 billion, with comparable sales up 0.6%. Home Depot also reiterated guidance.
ServiceNow surged earlier Tuesday before edging down 0.8%. The software stock was retreating after a 9% jump in the previous session after Bank of America reinstated coverage of the software company with a Buy rating and a $130 price target. ServiceNow has been among those most impacted by the protracted software selloff earlier this year, stemming from fears artificial intelligence would disrupt software-as-a-service business models.
Agilysys jumped 12% after the hospitality software provider beat earnings and revenue estimates in its fiscal fourth quarter. It was the company's 17th consecutive of record revenue, driven by subscription sales growth of 24%. Like ServiceNow, Agilysys shares cratered earlier this year amid the AI-driven software selloff.
Fellow software stocks Salesforce, Workday, Intuit, and Adobe all advanced. A disclosure released by the U.S. Office of Government Ethics last week showed President Donald Trump invested in a number of tech stocks in the first quarter.
Alphabet fell 2.4% to $387.64. The stock slipped from reaching the $5 trillion market cap level. The Google parent closed with a market capitalization of $4.79 trillion Monday, just over 4% off the milestone.
CoreWeave sank 6.3%. Google and Blackstone announced plans to create a new AI cloud company using the tech giant's chips. Alphabet's play for data center dominance is a blow to so-called neocloud providers such as CoreWeave and Nebius, which have benefited from the AI boom and demand for cloud computing power. Nebius stock fell 2.4%.
Akamai Technologies declined 5.2%, making it the worst performer in the S&P 500, after the cloud computing company announced a $2.6 billion convertible notes offering. The company said the proceeds would be used to fund the "rapid buildout" of its cloud infrastructure services business.
Micron Technology advanced 1.7% even as chip stocks continued to come under pressure. Increased bond yields are weighing on popular AI stocks, as investors gauge whether Big Tech investment can hold up in the face of higher borrowing costs.
Nvidia edged 0.7% lower, putting it on pace to close lower for a third consecutive trading session. The semiconductor giant reports earnings after the closing bell on Wednesday. Wall Street is hopeful earnings will spur a rally.
Sandisk fell 0.3%. Citi Research reiterated a Buy rating on the flash memory supplier and boosting its price target to $2,025 from $1,300. The new price target represents about 50% upside from current trading levels.
Coherent and Lumentum declined 2% and 0.9%, respectively. The two optical networking stocks sank Monday as sentiment was being hit both by high bond yields and news that prominent AI investor Leopold Aschenbrenner exited positions in Lumentum and Coherent in the first quarter.
Write to Callum Keown at callum.keown@dowjones.com and Kit Norton at kit.norton@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
(END) Dow Jones Newswires
May 19, 2026 12:04 ET (16:04 GMT)
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