Dow Jumps 611 Points as Oil Falls 6% on Iran Deal Optimism
Updated
Updated · CNBC · May 19
Dow Jumps 611 Points as Oil Falls 6% on Iran Deal Optimism
3 articles · Updated · CNBC · May 19
611-point gains in the Dow led a broad stock rally Wednesday, with the S&P 500 up 0.9% and the Nasdaq rising 1.3% as risk appetite returned.
A 6% drop in crude helped drive the move after President Donald Trump said the administration was in the “final stages” of negotiations with Iran; WTI fell to about $97 a barrel and Brent to roughly $104.
Treasury yields also eased, with the 10-year down more than 8 basis points and the 30-year off 6 basis points after recent rate spikes had rattled investors and raised fears of renewed inflation.
Fed minutes showed most officials would expect rate hikes if the Middle East conflict kept inflation above 2%, underscoring how closely markets are tying geopolitics, energy prices and policy.
Nvidia, up 2% ahead of results, remained another focal point, with investors looking to its first-quarter earnings for a fresh read on AI demand and the market's next catalyst.
With Nvidia dominating compute, which optical tech stocks will power the next phase of AI?
How fragile is the market's rally if the tentative US-Iran peace deal collapses?
Beyond oil, how will reopening the Strait of Hormuz impact global inflation and supply chains?