The three major U.S. stock indices rose together as expectations for peace negotiations between the U.S. and Iran led to a drop in international oil prices, easing energy cost pressures and boosting investor sentiment. The Dow Jones Industrial Average closed at a record high.
On May 21, the Dow gained 276.31 points, or 0.55%, finishing at 50,285.66. The Standard & Poor's 500 index rose 12.75 points, or 0.17%, to close at 7,445.72, while the Nasdaq Composite increased by 22.74 points, or 0.09%, ending at 26,293.10.
Market attention focused on the geopolitical situation in the Middle East and oil price trends. According to Reuters, optimism surrounding progress in U.S.-Iran peace negotiations supported investor sentiment. Brent crude oil prices briefly rose to around $109 per barrel but later fell below $103. As concerns over soaring oil prices eased, the stock market rebounded.
However, the gains were limited. Key issues such as Iran's uranium export and navigation management in the Strait of Hormuz remain unresolved, leaving uncertainty in the negotiations. Investors are wary that a resurgence in oil prices could increase inflationary pressures and corporate costs.
In individual stocks, Nvidia fell despite strong earnings and an $80 billion stock buyback plan. High market expectations and concerns over intensified competition in the semiconductor sector weighed on its stock price. Walmart also showed weakness, reflecting a conservative outlook due to cost pressures from high oil prices.
Economic indicators somewhat alleviated fears of a slowdown. New claims for unemployment benefits in the U.S. decreased, and manufacturing metrics showed signs of improvement. While the resilience of the economy was confirmed, inflation and oil price variables remain, tempering expectations for interest rate cuts from the Federal Reserve.
* This article has been translated by AI.
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