Wall Street Rallies as U.S.-Iran Talks Advance, Dow Jumps 645 Points

11 articles · Updated · Zacks Investment Research · May 21

The Dow climbed 645.47 points to 50,009.35 on Wednesday, while the Nasdaq rose 1.6% and the S&P 500 gained 1.1% as investors weighed signs of progress in U.S.-Iran negotiations.
Trump said Washington would give Iran a few more days to answer a proposed deal and described talks as in their final stages, while Tehran said contacts with the United States were continuing through diplomatic channels.
Fed minutes from the April 28-29 meeting showed officials still worried that higher energy costs and global conflict could keep inflation elevated longer, even after rates were held at 3.5%-3.75%.
Energy stocks fell 2.6% even as U.S. crude inventories dropped 7.9 million barrels, while the VIX slid 3.4% to 17.44, signaling calmer market sentiment despite inflation concerns.

As markets rally on diplomacy, are investors underestimating the Fed’s persistent inflation warnings?

Why did the energy sector fall amidst a major supply crisis and a broader market rally?

If a U.S.-Iran deal reopens the Strait of Hormuz, how quickly could global supply chains stabilize?