On May 15, 2023, US stock markets experienced significant declines as investor enthusiasm waned, particularly in the technology sector. The S&P 500 fell 1.24% to close at 7,408.50, while the Nasdaq Composite dropped 1.54% to 26,225.14, and the Dow Jones Industrial Average fell over 537 points to 49,526.17. The sell-off was largely driven by profit-taking in tech stocks, which had recently surged due to excitement around artificial intelligence. Major tech companies like Intel and Nvidia saw declines of over 6% and 4.4%, respectively. In contrast, Microsoft saw a 3% increase after Bill Ackman’s Pershing Square revealed a stake in the company.

Adding to market pressures were rising Treasury yields, with the 30-year yield climbing above 5.1%, raising concerns about inflation. Oil prices also surged, with West Texas Intermediate crude settling above $105 per barrel, following President Donald Trump's comments regarding Iran. Investor disappointment from the recent summit between Trump and Chinese President Xi Jinping further contributed to the cautious market sentiment, as traders had anticipated more substantial policy outcomes.