A trader work on the floor of the New York Stock Exchange during morning trading on May 20, 2026 in New York City.
Michael M. Santiago | Getty Images
The S&P 500 moved higher on Wednesday, thanks in part to a decline in oil prices, as traders looked ahead to the release of Nvidia‘s first-quarter earnings report.
The broad-based index rose 0.9%, while the Nasdaq Composite added 1.3%. The Dow Jones Industrial Average traded up 452 points, or 0.9%.
West Texas Intermediate futures shed 4% to trade around $99 per barrel. Brent crude pulled back 5% to around $105 a barrel.
Investors are turning their attention toward Nvidia, which reports its first-quarter earnings after the close. The report will be an important view into the artificial intelligence trade and provide the latest update on demand for chips. Shares of the company were last 2% higher.
“Nvidia is the most important AI stock, and since so much of the stock market’s gains over the past few 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.
The stock has risen almost 21% this year, and Demmert noted that while there is skepticism build into the chipmaker and AI darling, especially given its massive run of more than 1,400% in the last five years, expectations are “somewhat muted” going into 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 navigating sales in China,” he added.
Traders are also expecting the minutes from the Federal Reserve’s April meeting, which are due on Wednesday at 2 p.m. ET.
Rising bond yields pressured stocks on Tuesday, causing the S&P 500 and Nasdaq Composite to both post their third losing sessions in a row. The 30-year U.S. Treasury yield briefly topped 5.19%, marking its highest level in nearly 19 years.
The 10-year Treasury yield at one point hit 4.687% to reach its highest level since January 2025. Yields have spiked in recent days after a series of economic reports last week indicated that inflation may be reigniting, and as the trajectory of the U.S.-Iran war — and its impact on oil prices — remains uncertain.
U.S. 10-year Treasury
But yields cooled substantially on Wednesday, with the 10-year Treasury yield falling 9 basis points and the 30-year Treasury yield declining more than 7 basis points.
“Higher rates, as much as higher oil prices, can have a significant impact on the economy,” said Melissa Brown, managing director of investment decision research at SimCorp. “If the bond market is right, there probably is some cause for concern.”
