Brent below $105, S&P reverses after three-day drop: market awaits peace with Iran

On Wednesday, Ma 20, the main indices of the U.S. stock market rose, while oil prices and U.S. Treasury bond yields fell. Investors were optimistic about US President Donald Trump's statement on the likely imminent conclusion of negotiations with Iran. Investors are also focused on the upcoming after-hours publication of the quarterly report of the world's most expensive company Nvidia.

- The S&P 500 broad market index rose 1.1% at the end of Ma 20.

- The Dow Jones Industrial Average blue-chip index jumped 1.3%, posting its best session since April 30, according to FactSet data.

- The Nasdaq Composite Technology Sector Index added 1.6 percent.

- The Russell 2000 index of small and mid-capitalization companies showed the strongest growth, rising by 2.4%.

- Brent crude futures fell by 5.7%, dropping below $105 per barrel. North American WTI fell by 5.5% to $98.4 per barrel.

Oil futures fell in price after US President Donald Trump told reporters that the White House was in the "final stages" of negotiations with Iran.

Treasury yields, which jumped amid fears of accelerating inflation due to the situation in the Middle East, also fell, with 10-year bond yields falling more than eight basis points and 30-year yields down six, after hitting their highest since 2007 in the afternoon.

The yield of the most monetary policy-sensitive 2-year U.S. Treasury bonds retreated from the session's low after the publication of the minutes of the Fed's April meeting: the document indicated somewhat broader support for raising interest rates. Investors saw the minutes as a hawkish signal, MarketWatch wrote. The minutes showed that most officials concede policy tightening if the Iranian crisis continues to exacerbate inflation. A Fed rate hike could undermine an economy already threatened by higher energy costs, CNBC warned.

In addition, the session was held under the sign of waiting for the publication of Nvidia report. It is an important indicator of the state of the AI market and should reflect a fresh picture of demand for chips. The company's shares rose 1.3% on May 20. For Nvidia, the trick is usually not whether the company will exceed expectations, but how much it will exceed them, Bloomberg writes.

- "I'd like to believe it, but let's face it: how many times have we heard something like this before?" - commented Bloomberg on Trump's statement about the possible imminent end of negotiations, Bank of Nassau 1982 Chief Economist U Win Tin.

- "Everyone wants it to end, but so far the parties' negotiating positions on key issues have been far apart, with each -expecting the other to be the first to give in," Louis Navellier, a Wall Street veteran and founder of Navellier & Associates, told Bloomberg. - Even if a deal is struck, it may take time to make sure it's not broken before the situation is fully back to normal."

- "Nvidia is the most important AI-related stock, and since much of the stock market's rise over the past few years has been driven by the incredible capabilities of AI, the outcome of Wednesday's report means everything to this market," CNBC quoted Main Street Research chief investment officer James Demmert as saying. He also noted that the market is looking at the company with some skepticism after the stock has risen more than 1,400% over the past five years, and expectations ahead of the report appear "somewhat subdued." "The key questions in Nvidia's report are whether there will be signs of margin compression due to rising memory prices, and how the company is addressing the [lack of] sales in China," Demmert added.

This article was AI-translated and verified by a human editor