Traders 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 rose on Thursday as a rally in oil and Treasury yields reversed, with traders hoping for a resolution to the Middle East conflict.
The broad market index rose 0.4%, as did the Nasdaq Composite. The Dow Jones Industrial Average traded up 309 points, or 0.6%.
Stocks rose as oil prices gave up their earlier advance. West Texas Intermediate futures last traded down 2% to around $96 per barrel. Brent crude also fell 2% to around $102 per barrel.
Crude prices initially jumped after Reuters reported, citing sources, that Iran’s supreme leader issued a directive to keep enriched uranium within the country — further complicating the outlook to a resolution to the U.S.-Iran war.
The earlier spike in oil was followed with a move higher in Treasury yields, as traders grew fearful of rising inflation. However, yields on the benchmark 10-year Treasury note and 30-year bond later turned lower, falling more than 1 basis point to 4.556% and more than 2 basis points to 5.09%, respectively.
Stocks rallied on Wednesday, snapping a three-day losing streak for the S&P 500, as oil prices and bond yields retreated. Investor spirits were lifted after President Donald Trump said the administration was in the “final stages” of negotiations with Iran, according to a pool report.
“If inflation kicks up because oil prices stay at $100 or more, which could happen, there could be short-term concerns around that, and you’ll hear a lot of headline risk,” said The Wealth Alliance CEO Robert Conzo. However, he noted that the current level of the Cboe Volatility Index – around 17 – signals that investors are “feeling pretty comfortable” given the proliferation of artificial intelligence, strong earnings and low unemployment.
“All eyes on a deal,” he said
Traders on Thursday also digested Nvidia’s latest quarterly report. Nvidia breezed past Wall Street’s expectations for earnings and guidance, in addition to announcing a hike in its quarterly cash dividend to 25 cents. But investors have come to expect the chipmaker to beat estimates and raise its outlook amid the AI boom.
Nvidia shares were last seen trading down nearly 1%.
“People are saying, ‘We expect more,'” Conzo said. “They just want more to the point where more becomes unrealistic.”
