US Stocks Rebound as Treasury Yields, Oil Slide; Nvidia Tops Estimates

Wall Street’s three main indexes closed higher as the recent surge in US Treasury yields and global oil prices eased. Strong results from Nvidia, released after the bell, also buoyed sentiment toward technology shares.

On May 20, the Dow Jones Industrial Average rose 645.47 points, or 1.31%, to 50,059.35 on the New York Stock Exchange. The S&P 500 gained 79.36 points, or 1.08%, to 7,432.97, while the Nasdaq Composite climbed 399.65 points, or 1.54%, to 26,270.36.

Investor sentiment improved as Treasury yields pulled back after weighing on stocks in recent sessions. The 30-year Treasury yield, which had jumped to the 5.20% level a day earlier for its highest reading since 2007, fell more than 6 basis points to 5.114%. The benchmark 10-year yield dropped 10 basis points to 4.569%.

Oil prices also declined. July Brent crude settled 5.63% lower at $105.02 a barrel, while West Texas Intermediate fell 5.66% to $98.26.

The drop in crude prices was seen as reflecting expectations for progress in negotiations between the US and Iran. President Donald Trump said on May 20 that talks with Iran were in their final stage. Iran’s foreign ministry said it was reviewing a US proposal.

Technology and semiconductor shares led the advance. Nvidia rose 1.3% ahead of its earnings release, while AMD and Intel jumped 8.1% and 7.4%, respectively. The Philadelphia Semiconductor Index climbed 4.5%.

After the close, Nvidia reported first-quarter revenue of $81.62 billion for its fiscal year, covering February through April. That was up 20% from the previous quarter and 85% from a year earlier. Data center revenue surged 92% from a year earlier to $75.2 billion, driving the company’s overall growth. Adjusted earnings per share came in at $1.87, above the market estimate of $1.76.

Nvidia projected second-quarter revenue of $91 billion.

Kim Yeon-ji, Hankyung.com reporter kongzi@hankyung.com