U.S. stocks rebounded on Tuesday, buoyed by easing pressures from oil prices and Treasury yields. Amid expectations of negotiations with Iran, oil prices plummeted, while the rise in interest rates moderated, reviving buying interest in technology and semiconductor stocks.
On May 20, the Dow Jones Industrial Average closed up 645.47 points, or 1.31%, at 50,009.35. The S&P 500 index, which is heavily weighted toward large-cap stocks, rose 79.36 points, or 1.08%, to finish at 7,432.97. The tech-heavy Nasdaq composite surged 399.65 points, or 1.55%, closing at 26,270.359.
The recent decline in U.S. Treasury yields helped restore investor sentiment. The yield on the 30-year U.S. Treasury bond, which had reached a 19-year high of 5.20% the previous day, fell by 6.6 basis points to 5.114% on Tuesday.
The benchmark 10-year U.S. Treasury yield also dropped 10 basis points to 4.569%.
International oil prices saw a significant decline. July futures for Brent crude fell 5.63% to $105.02 per barrel, while July futures for West Texas Intermediate (WTI) crude dropped 5.66% to $98.26.
The drop in oil prices accelerated after President Donald Trump stated that negotiations with Iran had entered the "final stage." Speaking to reporters, Trump said, "We are in the final stages regarding Iran. Let’s see what happens."
The Iranian government is currently reviewing a new draft proposal from the U.S. based on its own 14-point proposal, but has not yet provided an official response.
In terms of individual stocks, technology and semiconductor sectors showed notable strength. Nvidia rose 1.3% amid strong earnings expectations, while AMD and Intel surged 8.1% and 7.4%, respectively. The Philadelphia Semiconductor Index jumped 4.5%.
However, Nvidia's stock fell 0.14% in after-hours trading to $223.16 following its earnings report, which revealed first-quarter revenues of $81.62 billion. The company projected second-quarter revenues between $89.18 billion and $92.82 billion.
Carol Schleif, chief market strategist at BMO Private Wealth, told Reuters, "Today, technology and AI themes are leading the market again. Just yesterday, concerns about interest rate hikes and potential inflation were dominant, but now there is a renewed focus on AI-related stocks."
* This article has been translated by AI.
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