A trader works on the floor of the New York Stock Exchange during morning trading on May 20, 2026 in New York City.
Miguel M. Santiago | fake images
Stocks rose on Wednesday as oil prices and U.S. Treasury yields fell amid growing optimism that the conflict in the Middle East could be resolved soon. Traders were also awaiting the publication of Nvidia first quarter results report.
He Dow Jones Industrial Average advanced 645.47 points, or 1.31%, closing at 50,009.35. He S&P 500 rose 1.08% to 7,432.97, while the Nasdaq Composite It added 1.54% and ended at 26,270.36.
West Texas Intermediate Futures It lost 5.66% to close at $98.26 per barrel. Brent Crude It fell 5.63% to settle at $105.02 per barrel. This was after President Donald Trump told reporters that the administration was in the “final stages” of negotiations with Iran, according to a joint report.
Treasury yields also cooled following the events. He 10-year Treasury The yield fell more than 9 basis points on Wednesday and the 30 year treasure The yield lost more than 6 basis points. One basis point is equivalent to 0.01%.
US 10-year Treasury
The bond market spooked investors in recent days, with the 30-year yield hitting its highest level since 2007 and the 10-year yield approaching multi-year highs. There is growing concern that inflation is reigniting due to rising oil prices and that the Federal Reserve, soon to be headed by Kevin Warsh, is behind in its fight against it. Rising rates could derail an economy already threatened by higher energy costs.
Minutes from the latest Federal Reserve meeting showed that most officials expected interest rate increases in the future if the Middle East conflict continued to exacerbate inflation, saying: “Most participants stressed, however, that tightening some policies would probably be appropriate if inflation continued to remain above 2 percent.”
Investors are also turning their attention to NVIDIAwhich reports its first quarter earnings after closing. The report will offer important insight into the AI trade and provide the latest update on chip demand. The company’s shares rose more than 1%.
“Nvidia is the biggest AI stock, and given that much of the stock market’s gains in recent years have been driven by the incredible capabilities of AI, the outcome of Wednesday’s earnings report means everything for this market,” said James Demmert, chief investment officer at Main Street Research.
Shares are up nearly 20% this year, and Demmert noted that while there is skepticism about the chipmaker and AI darling, especially given its massive run of more than 1,400% over the past five years, expectations are “somewhat muted” ahead of the report.
“The sticking points in Nvidia’s earnings report are any signs of margin compression due to rising memory prices, along with how the company is managing sales in China,” he added.
