Wall Street opened slightly lower on Tuesday (May 19), with day-trading attention locked on the semiconductor sector — and Nvidia in particular. Nasdaq 100 futures fell roughly 0.6%, S&P 500 futures dipped 0.4%, and the Dow lost about 77 points.
What started on Monday as a broad chip selloff — Seagate dropped 7%, Micron 6%, Western Digital 4.8% — continued Tuesday at a more modest pace. The selling comes alongside persistent inflation fears (April CPI ran hotter than expected) and rising bond yields: the 10-year Treasury hit 4.63%, the highest since early 2025.
Why It Matters
This week is a real sentiment test for short-term traders. Tomorrow (Wednesday) Nvidia reports fiscal Q1 results after the close, and no one wants to be on the wrong side of the move. Many day traders are trimming positions or running tactical shorts, with few holding overnight risk.
For active traders, the semi pullback feels like a "healthy correction" within a longer AI rally, not a crisis of confidence. The move is creating high intraday volatility — ideal for scalping quick entries and exits around key levels.
What's Moving Today
Nvidia (NVDA) fell about 0.8% in premarket trading, hovering around $220, on track for its third straight losing session. Micron (MU) lost 1.7%, Seagate (STX) dropped 2.9%, and Western Digital (WDC) eased 3%. The PHLX Semiconductor Index extended its two-day slide.
On the upside, Home Depot (HD) reported Q1 results that beat expectations this morning: revenue of $41.8 billion (up 4.8% YoY) and EPS of $3.41. The stock traded modestly higher around $300.
Deal of the day: Blackstone (BX) and Google (GOOGL) announced a new joint venture for AI cloud infrastructure, with Blackstone committing $5 billion in equity (potentially reaching $25 billion with leverage). The venture will use Google's TPU chips and target 500 MW of AI compute capacity by 2027. Both stocks edged higher in premarket.
What Traders Are Saying
Today's conversation revolves around three themes:
Tactical shorts in semiconductors — Many traders are hunting for short entries in chip stocks showing persistent downside momentum. Positions are intraday: enter on support breaks, exit on quick profit-taking.
Scalping Home Depot — The positive earnings report is creating volatility that active traders can exploit around the $300 level.
Light positioning in Nvidia — Despite the selloff, some traders are using the dip for small entries ahead of the earnings report, with tight risk management.
The Bottom Line
Today's session is characterized by cautious but not panicked sentiment. Day traders are most active on the short side of semiconductors, but the appetite to trade remains high. Tomorrow — Nvidia's earnings report — will likely bring the week's biggest move.
This is not investment advice.
