The Nasdaq 100 closed lower on Tuesday as investors took some profits in technology stocks. Israel’s leaders are expecting and preparing to rejoin potential fresh US strikes on Iran.

Global fund managers raised their allocation to equities by the most on record in May, amid ongoing optimism about huge spending by companies ⁠on AI, according to the latest BofA survey.

Morgan Stanley has raised its year-end target for the S&P 500 to 8,000 from 7,800, framing its upgraded outlook as an earnings story rather than a bet on expanding valuations.

In the bear case, however, where oil prices were to sustain levels of $130 to $150 and force the Fed into a hiking cycle, the bank expects the index to hit 5,900.

The 30-year Treasury yield rose to the highest level in almost two decades. Barclays and Citigroup strategists have warned clients that yields may breach 5.5%, which was last seen in 2004.

Some experts are warning of an impending stock market correction, highlighting a growing disconnect between surging high-flyers and a battered bond market.

The Nasdaq 100 saw a series of lower highs after pulling back from its peak around 29,650. We are neutral on the index, so range trading might be appropriate for the time being.

Asset recap

As of market close on 19 May, among EBC major products, Eli Lilly and Co shares led gains as the drugmaker benefited from Trump administration’s move to expand access to blockbuster obesity treatments.

Shares of Pinterest plummeted after investors grew increasingly concerned about persistent inflation and rising bond yields, raising worries about high valuations of the tech sector.

Gold remained on the back foot but brokerages remain constructive on the long-term outlook. On Sunday, JPMorgan lowered its 2026 average gold price forecast to $5,243 from $5,708.

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