Photo Credit: CNBC
Wall Street rallied sharply on May 20 after US President Donald Trump said negotiations with Iran were nearing a deal, raising hopes that tensions in the Middle East could ease.
The Dow Jones surged more than 650 points, while the S&P 500 and Nasdaq rose 1.1% and 1.5% respectively, ending weeks of weak market performance. However, US futures slipped the following morning, with Dow futures down around 140 points and Nasdaq futures falling over 250 points.
Oil prices dropped sharply after Trump’s comments, with Brent crude falling over 5.5% and US crude slipping below US$100 per barrel. Bond yields also eased, helping fuel the stock market rally.
Markets also reacted to strong earnings from NVIDIA Corporation, although the company’s shares traded lower in after-hours trading despite beating expectations.
Meanwhile, minutes from the latest Federal Reserve meeting showed policymakers remain concerned that inflation could stay elevated due to geopolitical tensions and rising energy prices, potentially leading to future interest rate hikes.