US stocks edge higher following the latest U-turn for oil prices
[May 22, 2026] By
STAN CHOE
NEW YORK (AP) — Hour-to-hour swings for oil prices keep jerking
financial markets around, and U.S. stocks wavered Thursday following the
latest reversal.
The S&P 500 rose 0.2% and inched closer to its all-time high set last
week. The Dow Jones Industrial Average added 276 points, or 0.6%, and
the Nasdaq composite climbed 0.1%.
All three indexes erased early drops and gained strength following the
latest U-turn for oil prices. Brent crude oil briefly got above $109 per
barrel in the morning, threatening to worsen the world’s already high
inflation, before quickly erasing all its gains in midday trading and
falling 2.3% to settle at $102.58.
Oil prices are yo-yoing because of uncertainty about how long the war
with Iran will keep the Strait of Hormuz shut. The closure has prevented
oil tankers from exiting the Persian Gulf to deliver crude to customers
worldwide, driving up oil’s price.
As oil prices eased Thursday, so did pressure on Wall Street that’s been
building from the bond market.
Yields had climbed so high that they threatened to slow economies
worldwide and undercut prices for stocks, bitcoin and all kinds of other
investments. They’ve already forced the average long-term U.S. mortgage
rate to its most expensive level since last summer, and they could
curtail companies’ borrowing to build the AI data centers that have
supported the U.S. economy’s growth recently.
The yield on the 10-year Treasury briefly got near 4.63% in the morning
before falling back to 4.55% following the midday turnaround for oil
prices. That’s down from 4.57% late Wednesday and from 4.67% the day
before.
Some of the biggest beneficiaries of lower yields can be the smallest
companies, many of which need to borrow money to grow. The Russell 2000
index of the smallest U.S. stocks climbed 0.9%, far more than the rest
of the market.
Stocks of companies with big fuel bills also rose because of the easing
of oil prices. Southwest Airlines gained 2.7%, and American Airlines
flew 4.9% higher.
Ralph Lauren jumped 13.9% after reporting stronger profit and revenue
for the latest quarter than analysts expected.
They helped offset a 1.8% drop for Nvidia, which is one of Wall Street’s
most influential stocks because of its immense size.
The chip company reported stronger profit and revenue for the latest
quarter than analysts expected, while also forecasting revenue for the
current quarter that cleared analysts’ estimates. “The buildout of AI
factories — the largest infrastructure expansion in human history — is
accelerating at extraordinary speed,” CEO Jensen Huang said.
But such performances and such talk have become routine, and Nvidia’s
stock swiveled between losses and gains before falling.
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 Some analysts said the weakness may
have been because investors were locking in profits after Nvidia’s
stock had soared nearly 70% over the prior year, more than double
the S&P 500’s 27% jump. The broad AI industry is also getting
criticism for becoming too expensive, as well as too circular as
Nvidia has bought ownership stakes in companies that use its own
chips that drive Nvidia’s revenue.
Walmart also fell, 7.3%, following its profit report. The retailer
delivered another quarter of impressive revenue but offered up
weaker forecasts for upcoming profit than analysts expected.
Walmart has resonated with Americans who have grown increasingly
cautious about where they spend their money with inflation taking a
bigger bite out of paychecks.
All told, the S&P 500 rose 12.75 points to 7,445.72. The Dow Jones
Industrial Average climbed 276.31 points to 50,285.66, and the
Nasdaq composite gained 22.74 to 26,293.10.
A preliminary report on U.S. business activity suggested that
companies are also feeling the bite of higher inflation.
A flash survey from S&P Global said growth in activity for U.S.
services businesses unexpectedly slowed a tad, though growth was
better than forecast for U.S manufacturers.
“The damaging economic impact from the war in the Middle East is
becoming increasingly evident in the business surveys,” according to
Chris Williamson, chief business economist at S&P Global Market
Intelligence.
A separate report, meanwhile, gave the latest signal that the U.S.
job market remains in better shape than economists expected. The
number of U.S. workers applying for unemployment benefits last week
unexpectedly declined in an indication of fewer layoffs.
In stock markets abroad, indexes were mixed in Europe following
bigger moves in Asia.
South Korea’s Kospi Kospi jumped 8.4% thanks to strength for
technology stocks. Samsung Electronics leaped 8.5% after its labor
union and management reached an agreement late Wednesday that
averted a strike. SK Hynix, a chip company partnering with Nvidia,
leaped 11.2%.
Tokyo’s Nikkei 225 jumped 3.1%, while indexes fell 1% in Hong Kong
and 2% in Shanghai.
___
AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
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