US Stocks Hold Rebound on Falling Energy Prices and AI Optimism
The US stock market closed higher on Wednesday (May 21), boosted by falling energy prices ahead of Nvidia's earnings report, which will provide an update on the AI economy that has powered the market all year. The S&P 500 rose 1%, while the Dow Jones Industrial Average and Nasdaq 100 each gained 1.2%.
Three supertankers left the Strait of Hormuz fully loaded after President Donald Trump stated that a deal with Iran could be reached soon, easing concerns about energy inflation. Nvidia's 1.5% share gain reflected expectations for strong profit and order growth, but the company's guidance is expected to impact the entire technology sector, given that AI spending has supported US investment, productivity growth, and infrastructure spending in the coming years.
The AI sector also received support from reports that OpenAI is preparing to file for an IPO on Friday, paving the way for more AI spending. Meanwhile, TJX and Target each saw their shares rise following their earnings reports. Other sectors also moved higher as bond yields eased, despite the Federal Reserve minutes showing a hawkish tone.
Source: Newsmaker.id
