S&P 500 and Nasdaq Drop as Oil Prices Rise
The U.S. stock market fell on Thursday (May 21), driven by surging crude oil prices and government bond yields, while investors assessed whether Nvidia's earnings report met high expectations in the artificial intelligence sector.
The S&P 500 and Nasdaq Composite each fell 0.5%, while the Dow Jones Industrial Average fell 276 points, or 0.6%. The oil price surge was triggered by reports that Iran's Supreme Leader ordered enriched uranium to remain domestic, complicating prospects for a resolution to the U.S.-Iran conflict. WTI rose 3% to $102 per barrel, while Brent rose 3% to $108 per barrel.
The rise in oil also pushed up government bond yields. The 10-year Treasury yield rose 4 basis points to 4.615%, while the 30-year yield rose 2 basis points to 5.14%, as market concerns about inflation grew.
Investors were also monitoring Nvidia's quarterly report. The chip company beat earnings expectations and guidance and announced a quarterly dividend increase to $0.25 per share. However, Nvidia shares remained relatively stable as the market had placed high expectations on the company amid the AI boom.
Earlier on Wednesday, the market recovered after oil prices and bond yields declined, supported by President Donald Trump's comments regarding progress in peace negotiations with Iran, which fueled investor optimism.
Looking ahead, the focus will be on oil and bond price movements, developments in US-Iran negotiations, and quarterly reports from major technology companies, particularly Nvidia, which serves as a barometer of market sentiment toward the AI and global technology sectors. (arl)
Source: newsmaker.id
