May 15 Market Sell-Off: S&P 500 -0.9%, Nasdaq -1.3%, Dow -407pts — Wall Street Sees 'Nothing of Real Substance' in Trump-Xi Summit Outcomes

US equity markets sold off sharply on May 15, 2026 as investors reacted to the disappointing Trump-Xi summit outcomes — reversing a portion of the record-setting Day 1 gains from May 14. **May 15, 2026 Market Closes:** - **S&P 500:** -0.9% — giving back roughly half of the prior day's summit-driven rally - **Nasdaq Composite:** -1.3% — tech sector bore the brunt, as no H200/AI chip breakthrough materialized and rare earth partial truce fell short of a comprehensive deal - **Dow Jones Industrial Average:** -407 points (-0.8%) — Boeing shares fell approximately 4% on the 200-jet order disappointment vs. the 500 anticipated **Context — May 14 Close (Pre-Sell-Off Peak):** The previous day's records (S&P 500 crossing 7,500 for the first time; Nasdaq new ATH at 26,635; Dow reclaiming 50,000) set a high bar that the 'meagre' summit outcomes could not sustain. **Key drivers of the sell-off:** 1. **No Iran breakthrough:** Trump did not ask Xi for help with the Hormuz blockade. Brent crude remained ~$105-110/bbl — the energy inflation shock that drove CPI to 3.8% and PPI to 6.0% remains fully intact 2. **Boeing disappointment:** 200-jet order vs. 500 expected; Boeing stock fell ~4% 3. **No H200 Nvidia resolution:** Day 2 failed to confirm the H200 AI chip clearance as a definitive deal; the tech sector sold off on the ambiguity 4. **Rare earth partial truce only:** Mutual de-escalation of threats (not a formal deal) disappointed investors who had priced in a more comprehensive agreement 5. **Analyst framing:** Bloomberg's 'winners and losers' framing and multiple 'meagre' characterizations crystallized the narrative **Stagflation backdrop unchanged:** The sell-off confirmed the market's underlying anxiety: without Iran relief, CPI cannot fall meaningfully, the Fed (now under Warsh) faces impossible choices, and Section 122 tariffs expire July 23 (68 days). The S&P 500 Shiller CAPE ratio remains deeply elevated even after the sell-off. **Pre-market signals:** Dow futures had been down 300+ points in pre-market on May 15, Nasdaq futures -1.4%, S&P 500 futures -1.0% — suggesting the sell-off was anticipated as summit details became public.