Oil prices keep swinging, and so do stocks worldwide
[May 19, 2026] By
STAN CHOE
NEW YORK (AP) — Oil prices and stock markets worldwide swung through a
shaky Monday with uncertainty about what will happen with the Iran war.
The S&P 500 swiveled between gains and losses before finishing with a
dip of 0.1%, its second loss since setting an all-time high last week.
The Dow Jones Industrial Average added 159 points, or 0.3%, and the
Nasdaq composite fell 0.5% after both indexes likewise yo-yoed.
Stock prices moved in the opposite direction of oil prices, which have
been twitchy because of uncertainty about how long the Iran war will
keep the Strait of Hormuz closed and prevent oil tankers from delivering
crude. The price for a barrel of Brent crude oil, the international
standard, went from a high of $112 overnight to below $107 in the
morning before turning back higher.
After settling at $112.10 per barrel, Brent’s price then fell back below
$109 after President Donald Trump said late in the day that he would
hold off on a military attack on Iran planned for Tuesday, at the
request of allies in the region. That kept alive hopes that a deal to
open the Strait of Hormuz may still be possible.
The moves for oil prices have helped make the world’s bond markets the
center of the action recently. Climbing yields there have cranked up the
pressure on economies and stock markets worldwide.
Higher yields make it more expensive for households and businesses to
borrow, which U.S. homebuyers know because of higher mortgage rates.
Higher interest rates could also make it more difficult for companies to
borrow to build data centers for artificial-intelligence technology,
which has been driving much of the U.S. economy’s growth.
In the bond market, the yield on the 10-year Treasury got as high as
4.63% before falling back to 4.59%, where it was late Friday. The yield
on the 10-year Japanese government bond rallied toward its highest level
since the late 1990s.
Yields worldwide have been climbing on fears about higher inflation
caused by higher oil prices, which could push central banks not only to
abandon the possibility of cutting interest rates but also consider
hiking rates. Higher rates would slow inflation at the cost of hurting
the economy and dragging on prices for stocks and other investments.
Several solid reports on the U.S. economy recently, along with worries
about the U.S. government’s huge and growing debt problem, are also
pushing upward on yields.
On Wall Street, Regeneron Pharmaceuticals dropped 9.8% to help lead the
U.S. stock market lower after reporting discouraging data from a trial
of a treatment for melanoma.
[to top of second column] |
Trader Michael Milano, center, works with colleagues on the floor of
the New York Stock Exchange, Wednesday, May 13, 2026. (AP
Photo/Richard Drew)
 NextEra Energy fell 4.6% after
agreeing to buy Dominion Energy in an all-stock deal to create the
world’s largest regulated electric utility by market value. Dominion
rallied 9.4%.
Delta Air Lines finished essentially flat after swinging up and down
through the day because of oil prices. It got a boost early
following news that Berkshire Hathaway bought more than $2.6 billion
of the airline’s stock. Berkshire Hathaway built a reputation as a
value investor able to buy stocks at low prices under its former
leader, Warren Buffett.
Boston Scientific was another winner and climbed 6.2% after saying
it would spend $2 billion of its previously announced $5 billion
stock buyback program by the end of June. Such purchases send cash
directly to investors and boost the company’s per-share earnings.
All told, the S&P 500 fell 5.45 points to 7,403.05. The Dow Jones
Industrial Average added 159.95 to 49,686.12, and the Nasdaq
composite fell 134.41 to 26,090.73.
This upcoming week will offer little in terms of data on the U.S.
economy, but a heavily anticipated report on Nvidia’s latest
quarterly results will arrive Wednesday. The chip company has
routinely blown past analysts’ expectations each quarter, while
forecasting even bigger growth than Wall Street had thought. It will
likely need to keep up such momentum to keep AI stocks driving the
market to more records.
Target, Home Depot and Walmart will also report their latest
quarterly results this week.
In stock markets abroad, indexes fell in much of Asia but reversed
losses in Europe to finish higher. Japan’s Nikkei 225 sank 1%, but
Germany’s DAX returned 1.5% for two of the world’s bigger moves.
___
AP Business Writers Chan Ho-him and Matt Ott contributed to this
report.
All contents © copyright 2026 Associated Press. All rights reserved
 |
